Credit agencies aren't buying Alberta's arguments against credit downgrade
But Finance Minster Joe Ceci says he rejected suggestions to introduce a sales tax
Bond rating agency representatives who recently downgraded Alberta's credit rating did not change their minds in meetings this week with Alberta Finance MInister Joe Ceci.
In a conference call from New York with reporters Thursday, Ceci acknowledged that discussions with Moody's Investors Service, Standard and Poor's and DBRS resulted in both sides agreeing to disagree.
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"They weren't willing to alter their approach based on what I said," said Ceci, who met with the credit agencies Monday in Toronto.
But he suggested that the bankers, traders and economists he met with in New York over the past two days agreed with the NDP's economic diversification and infrastructure building plan.
The 2016-17 budget revealed the government is forecasting a $10.4 billion deficit and plans to go $57.6 billion into debt by 2019.
DBRS downgraded Alberta's credit rating the day after the budget was tabled April.14 over concerns that the government was unwilling to cut spending and raise taxes.
On Monday, Moody's changed Alberta's rating from triple-A to double-A1 because of "deep deficits" and a "resulting and rapid rise of provincial debt levels."
Standard and Poor's dropped the province's triple-A rating in December.
In an interview with CBC TV on Tuesday, Ceci said the agencies told him that introducing a provincial sales tax was one step Alberta could take to restore its credit rating.
When asked about those remarks Thursday, Ceci said he explained why Alberta wouldn't take that step, citing opposition from Albertans and a belief that a PST would take money out of the economy.
"It was a respectful disagreement in a room with people who had one perspective and I was able, my team was able, to share an alternative perspective that we know from our work in Alberta," he said.
Ceci addressed the Economic Club of Canada in Toronto and the Canadian Association of New York during his four-day trip.