Fitch Ratings has recently announced that Canada’s rating was unchanged at ‘AAA’ and the outlook was stable. Key takeaways from the official report, via Reuters.
- Canada’s general government debt burden remains high but deficit is relatively modest.
- Economic impact of U.S. Tariffs on selected Canadian imports imposed to date is “manageable”.
- Economic impact of a u.S. Withdrawal from NAFTA on Canada would be negative but would probably not lead to a prolonged recession.
- Believe that Canada’s financial system & individual institutions are “Robust” in event of a downturn in housing market.
- Canada’s general government debt burden remains high but the deficit is relatively modest.
- Expect Canada’s general government debt ratio to continue to fall.
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