(New York) Canada was deprived of its perfect AAA rating on its long-term debt on Wednesday by the rating agency Fitch, which reduced it to AA due to “the deterioration of the finances public ”.
Published on 24 June 2020 at 14 h 42
France Media Agency
Due to the economic consequences of the COVID pandemic – 19, “Canada will show a large swelling in its deficit in 2020 and come out of the recession with a much higher public debt, “said Fitch in a statement.
The outlook for this rating is stable, specifies the rating agency.
“The stable outlook reflects Fitch's conviction that the federal debt-to-GDP ratio will stabilize in the medium term, in line with the policies preceding the coronavirus and that the economy will gradually recover thanks to the support monetary and budgetary policies ”, underlines the press release.
Canada's structural strength is the basis for this rating, says Fitch, citing a diverse, modern economy as well as strong governance and macroeconomic policies that have resulted in continued growth and low inflation.
With this deterioration, Canada is leaving a very closed club.
