Bond rating agency DBRS Morning Star says rising borrowing, and a projected deficit for the coming year have softened the province’s near-term fiscal outlook.

DBRS says volatile commodity prices and potentially lower offshore royalties present ongoing uncertainty.

The bond rating agency also says the province’s projected Brent oil price of US $82 per barrel in 2024-25 appears optimistic in relation to current prices—and also presents a “modest downside to the current forecast projecting a 7.8 per cent revenue growth in 2024-25.

DBRS says the debt outlook has also deteriorated slightly with an increase in net debt.

It says global economic conditions in 2024, and commodity price volatility present the greatest risks to the province’s economic outlook.