![]() ![]() References herein to this "Website" means and all of its website content (the "Content"), including, without limitation, any and all credit ratings and other opinions, services, products, software, reports, information, data and other content displayed, provided or accessed by or through. You are also subject to applicable laws, rules and regulations when you access and use this Website. These Terms of Use (the "Terms of Use") contain terms, provisions, covenants and conditions to which you are subject when you access or use any or all of this Website.Disclaimers Limitation of Liability Indemnification Exclusive Jurisdiction and Venue Waiver of Jury Trial.Copyrights, Trademarks and Service Marks.Research commentaries: three years from the date of publication on this website.News releases: three years from the date of publication on this website website.Events, external news, and videos: three years from the date of publication on this website.Previous Morningstar rating methodologies and guidelines: three years from the date when the methodology or guideline was archived.Surveillance rating reports associated with previous Morningstar ratings: three years from the date of issuance of the rating report.New issue rating reports associated with previous Morningstar ratings: three years from the date of issuance of the rating report.Rating action announcements associated with previous Morningstar ratings: three years from the date of announcement.Rating history of previous Morningstar ratings: in accordance with applicable regulatory requirements.I think it reflects a slightly different interpretation by this bond rating agency on how to look at the debt numbers in Canada and just how much fiscal room Canada has.Information regarding previous Morningstar credit ratings, previous Morningstar rating methodologies, research, commentaries, and historical information will be retained on this website for the following specified lengths of time: “It’s good news, it’s a sigh of relief for the finance minister. “I’m not surprised ,” Page told BNN Bloomberg. S&P warned it could downgrade this country's credit rating at some point over the next couple of years "should the deterioration in the government's fiscal position become more severe and prolonged than we currently expect."įormer Parliamentary Budget Officer Kevin Page said Canada will eventually have to explore the need for austerity to help bring down the deficit, but that’s an issue to focus on in a couple years when the pandemic is hopefully behind us. Our government was in a great position to deploy our fiscal firepower to protect Canadians, and we have,” the finance minister’s Press Secretary Maéva Proteau said in an email to BNN Bloomberg.Ĭanada is by no means out of the woods, however. “Going into the global pandemic, Canada entered this crisis on strong footing, with a net debt-to-GDP ratio considerably lower than its G7 peers. The decision was welcomed by Finance Minister Bill Morneau’s office. ![]() The largely temporary deviation of the government's fiscal profile does not offset Canada's structural credit strengths, in our view," it said in its report Wednesday. "While fiscal and debt metrics will worsen due to the size of the unprecedented government response, we believe that the government's use of its policy flexibility will likely help the economy and labour market to recover. S&P, however, demonstrated more confidence that Canada's deficit won't spiral out of control. It also estimated the national debt will hit more than $1 trillion.Įven ahead of that outlook, Fitch Ratings set off alarm bells in June when it downgraded Canada to AA+ from AAA due to the country's weakening fiscal situation. "We expect that the government will prudently taper its support measures as the economy recovers next year, thereby maintaining its strong financial profile despite a higher burden of net general government debt," S&P said in its report.Įarlier this month, the federal government forecast a deficit of $343.2 billion in the 2020-21 fiscal year, largely because of emergency relief measures for consumers and businesses. In a report published late Wednesday afternoon, S&P said it expects the Canadian economy will recover next year after a flurry of fiscal and monetary measures were utilized to help absorb the shock from COVID-19. S&P Global Ratings has affirmed Canada's AAA credit rating despite the growing cost of shielding the economy from COVID-19, a move that breaks ranks with a rival credit rating agency. ![]()
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