Fitch Ratings has downgraded Canada's credit rating to AA+ from AAA, citing the federal government's move to borrow about a quarter of a trillion dollars to prop the economy up during the pandemic lockdown.
Fitch Ratings, Moody's and S&P Global Ratings are the three credit rating organizations approved by the U.S. Securities and Exchange Commission to provide financial information for regulatory purposes.
The agency said that it while it is downgrading Canada's rating, it expects Canada's debt-to-GDP ratio to stabilize over the medium term before the economy gradually starts recovering with the help of monetary and fiscal stimulus.
Finance Minister Bill Morneau's office responded to the news with a statement saying that Canada's pre-pandemic economic health allowed the federal government to "deploy our fiscal firepower to protect Canadians" and that the economy would be in far worse shape had it not acted.
"Canada continues to be in a stronger financial position than many other countries in the G7 and G20," the statement said. "Global markets continue to invest in Canadian bonds, driving our cost of borrowing to historic lows. Moving forward, we will continue to be fiscally responsible while acting to protect our country and its economy."
More to come ...
https://news.google.com/__i/rss/rd/articles/CBMiTWh0dHBzOi8vd3d3LmNiYy5jYS9uZXdzL3BvbGl0aWNzL2ZpdGNoLXJhdGluZ3MtZG93bmdyYWRlYWEtZnJvbS1hYWEtMS41NjI1NDU30gEgaHR0cHM6Ly93d3cuY2JjLmNhL2FtcC8xLjU2MjU0NTc?oc=5
2020-06-24 18:07:00Z
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