Fitch Ratings has reaffirmed its triple-A rating of Canada, with a stable outlook.
“Canada has a good track record of prudent fiscal management,” says a statement from the credit ratings agency. “A stable outlook reflects Fitch’s assessment that downside risks to the rating are currently not significant.”
Finance Minister Joe Oliver welcomed the news.
“Today we are reminded that Canada is an island of stability in an uncertain global economy,” he says. “Though today’s announcement builds confidence in Canada, we cannot be complacent.”
Although public debt is forecast to decline and will stay within the tolerance of a AAA rating under Fitch’s baseline projections, the agency notes that “the high debt burden highlights its more limited fiscal space compared with rating peers.”
Still, Fitch says “Canada’s track-record of debt reduction in the past and ample domestic financing flexibility are important mitigating factors.”
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