Quote:
Originally Posted by CaptainCrunch
Basically the cost of borrowing money increases, and you pay more interest to service your loans.
So it pretty much automatically means that the borrowing to spend infrastructure plan for the province is going to cost more.
This drop isn't a significant one yet, Alberta is still seen as a good borrowing risk. Its more of a warning then anything else.
If you want to see massive drops, Ontario and Manitoba have seen pretty big credit rating drops. In Ontario its really going to screw up their budget at some point.
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In fact recent downgrades to sovereign debt have actually increased the value of bond prices and reduced borrowing costs. Of course Alberta debt is sub-national so it's not necessarily the same thing.