S&P: Canada 'AAA/A-1+' ratings affirmed; outlook remains stable

Eren Sengezer FXStreet

The S&P Ratings has recently announced that it affirmed Canada's sovereign rating at 'AAA/A+1' and maintained its outlook at 'stable'.

Key takeaways from the press release (via Reuters)

Stable outlook reflects expectation of moderate GDP growth, prudent fiscal stance, and a gradually cooling housing market.
High wealth, economic resilience, ample fiscal and monetary buffers should enable Canada to adjust to changing global economic conditions.
Cross-border production chains and investment should remain largely intact, regardless of developments related to proposed USMCA.
Small total deficits and large general government liquid assets will keep Canada's net general government debt burden fairly low.
Canada maintains a strong external position, which could help soften the impact of potential domestic shocks.
Expects provincial housing policies, rising interest rates to work in unison to ease Toronto, Vancouver housing markets imbalances.
Announcement by GM to not allocate any production to Ontario-based Oshawa plant in 2019 to partly weigh on growth prospects.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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