Standard & Poors rating
Canada ratings affirmed at 'AAA/A-1+'; outlook remains stable
- says Canadian government using fiscal, monetary headroom to bolster social safety net & minimize income loss during downturn caused by covid-19
- Expect that Canadian government will prudently taper its support measures as the economy recovers next year
- says stable outlook reflects view that Canada's high economic diversification will help weather impact of covid-19 measures on economic activity
- Canada's public finances were well positioned entering pandemic to enable strong policy response to contain its negative impact
- expect Canadian economy to recover in 2021, which will partially compensate for loss of output this year, and continued gdp growth thereafter
- says AAA rating on Canada continues to reflect strong institutions; credible monetary policy; sound net external position; export-oriented economy
- expect increase in new borrowing in 2020 to finance support packages to push Canada's net general govt debt to more than 60% of gdp in 2020
- expect Canada's moderate current account deficit to rise marginally in 2020
- says although s&p believes that a housing price correction is likely in Canada, it probably will be short-lived
