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Fitch: Negative Rating Pressure on Throne Speech, Sees CAD380B Deficit

CANADA
(MNI) OTTAWA
  • "Failure to set clear post-pandemic fiscal anchors and reduce the federal deficit to sustainable levels after the public health crisis could renew negative ratings pressure," Fitch says Friday
  • Throne Speech plan announced Wed would "signal a more structural federal fiscal expansion over the long term"
  • "The stated policy agenda points to the FY2020-2021 federal government deficit, which we currently estimate at CAD380 billion (17.5% of GDP), and the FY22 deficit widening further"
  • Debt burden is already higher than peers with AA+ rating
  • Fitch took away AAA rating earlier this year
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

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