Fitch strips Canada's AAA credit rating,.....>

CANADA: Fitch strips Canada's AAA credit rating, reduced to AA+, outlook stable.

-While big deficit to tackle Covid-19 supports economic recovery "investment and

growth prospects face challenges."

-"The Stable Outlook reflects Fitch's expectation that Canada's consolidated

gross general government debt/GDP will stabilize over the medium term, in line

with the pre-coronavirus policies, and that the economy will gradually recover."

-"Fitch expects the coronavirus response to raise Canada's consolidated gross

general government debt to 115.1% of GDP in 2020, up from 88.3% of GDP in 2019."

-"Fitch expects Canada's consolidated gross general government debt/GDP ratio to

broadly stabilize at 120%-121% of GDP in 2022-2024."

-"Fitch expects Canada's general government deficit to widen to 16.1% of GDP in

2020 (from small overall surpluses of less than 1% of GDP during 2014-2019),

then narrow to 6.5% and 3.0% of GDP in 2021 and 2022." (Federal deficit will be

12.8% of GDP in 2020.)

-GDP seen -7.1% this year, +3.9% in 2021. Medium-term growth prospects 1.7%.

-"Canada's net external debt/GDP, 44.9%, is elevated."