Fitch says US North American ratings stable in the year ahead
US high debt to be outweighed by extraordinary financing flexibility
Expect growth in North America to slow but remain above long-term potential
Fitch expects Fed to hike 75bps in 2019
Reduced uncertainty on NAFTA will benefit Canada in particular
Short term risk to US rating is tail risk of failure to lift debt limit
Over medium term a larger or more-rapid rise in US deficits could lead to negative ratings action
Democrat victory in House means less risk of further tax cuts
Action to mitigate impact on deficit of growing mandatory spending is also unlikely in US
General US government debt will climb further above 100% in FY2019 but not rapidly
Canada general govt deficits on a downward path although subject to risks from provinces
Nothing surprising here. The crunch will come in about 5 years when interest payments and entitlements really begin to squeeze.