Moody’s Investor Services adjusted its long-term debt rating for Alberta from stable to negative on Monday and says the change was based on the risk to the province’s finances from falling oil prices.

The bond rating agency says both Alberta Capital Finance Corporation (ACFA) and ATB Financial will retain triple A credit ratings and that short-term P-1 ratings will remain unchanged.

"They've put us on a watch, which really just is as a result of oil and where that's at and it's impact on our economy," said Alberta’s Finance Minister, Joe Ceci.

Moody’s says the province’s fiscal position will likely deteriorate further than previously expected and that without corrective action, it will lead to higher deficits and lower liquidity than originally forecasted in the budget.

Ceci says shocks to the stock market, Canadian dollar and oil prices are having a serious effect on government revenues in all energy-producing areas.

“The Government of Alberta does not control the price of oil. But there are measures we can take to manage these shocks, and we are taking them,” said Ceci in a statement. “We will do what we can within our scope and financial resources to reduce our vulnerability to these shocks, by promoting economic development and diversification. We have already taken some important first steps in this direction in our most recent budget.”

Falling oil prices have hit the province hard and this year's budget is calling for a deficit of more than $6 billion.

“We have stabilized budgets to protect health care and education," said Ceci “We will also carefully manage spending on government programs to ensure government deficits don’t become unmanageable. All government spending programs are under review. There are many important priorities that will have to wait until our finances permit us to address them.”

Moody’s says the outlook could be revised back to stable if the province shows it can limit debt accumulation and debt service cost increases through a comprehensive fiscal plan.

Budget 2016 is expected to be released in the spring.

To view the report from Moody’s click HERE.