Another credit rating agency has expressed concern about Alberta’s fiscal future and says low oil prices combined with the province’s borrowing plans will cause it to exceed its own debt limits this fiscal year.

Toronto-based DBRS released a report on Thursday that predicts a grim future for Alberta’s economy.

"The negative trend reflects DBRS's expectation that the continued weakness in oil prices will contribute to a material erosion in the province's fiscal performance and accumulation of debt," said the DBRS report.

The agency confirmed Alberta's triple-A credit rating, but said debt is now expected to exceed 15 percent of GDP as early as (fiscal) 2016-17.

"DBRS believes that the fiscal response is unlikely to be adequate to maintain credit metrics consistent with the AAA rating, in particular maintaining a DBRS-adjusted debt burden below 15 percent of GDP," it added.

Debt limits were legislated last year and the province can’t borrow so much money that the total exceeds 15 percent of its gross domestic product.

Finance Minister Joe Ceci says that 15 percent limit is critical to ensure that future generations of Albertans are not saddled with crippling debt, but he has noted other provinces take on as much as 30 percent.

In the Notley government’s first budget last fall, it ramped up infrastructure spending to $34 billion over the next five years, despite the low price of oil.

That spending was based on benchmark oil being $50 USD a barrel and $61 USD a barrel in the upcoming fiscal year that starts April 1, but right now it's wallowing below $30 a barrel.

Ceci said in a statement that the province is sticking with the long-term plan introduced in the October budget.

"Our government will work to find efficiencies, but we will not make reckless cuts that would simply make a bad situation worse," said Ceci.

DBRS also downgraded the fiscal outlook for the province from stable to negative and last week, Moody's Investors Service issued the same downgrade.

Last month, Standard and Poor's dropped its triple-A rating for Alberta down to double-A plus saying that Alberta's financial management is "very strong" but it's budgeting performance is "weak."

Interim PC Leader Ric McIver released a statement regarding the economic outlook downgrade saying…

“The common theme in each of these agencies’ reports is that Alberta’s rising debt levels, along with the lack of a credible fiscal plan, has eroded market confidence and put us in an extremely vulnerable economic position,” said McIver.

“We recognize that the government has no control over the price of oil, but these credit and economic outlook downgrades have as much to do with this government’s actions, or lack of action, to address current fiscal realities as it does with commodity prices. The Progressive Conservatives urge the NDP government to create a comprehensive economic recovery plan that includes a realistic multi-year fiscal plan, end the uncertainty surrounding oil and gas royalties by releasing the Royalty Review Panel’s report, and adjust spending levels to align with the economic reality we live in.”

A drop in rating reflects a loss of confidence in debt management and leads to higher borrowing costs.

(With files from The Canadian Press)