News out earlier

News out earlier

Canada was affirmed at AAA by Fitch earlier today with a stable outlook. It's one of the few sovereigns with a top rating at all three major ratings agencies. There is also nearly no talk about a downgrade given the improving federal fiscal picture and deficit forecast at just 0.4% of GDP this year.

An election is coming in October but Fitch sees low risks around it with the two top traditional parties far ahead in the polls.

The statement from Fitch called Canada's macro performance 'robust' even with just 1.3% GDP growth forecast this year that's been 'subdued' by cooling housing and external headwinds.

Overall, they peg gross government debt at 89.2% of GDP at year end but they see that gradually falling. It also includes some numbers that other countries exclude and they note that the IMF comparable is 74%.

The news may have helped to given the Canadian dollar a lift today even as oil prices slump 1.5%.