Searching...

Entity

= Ultimate Parent

Obligor
Analyst
Location
ISIN
CUSIP

Fitch Canada

Global Home > Fitch Canada

Fitch Affirms Canada's Ratings at 'AAA'; Outlook Stable

Canada's 'AAA' rating balances structural strengths against relatively high general government indebtedness. The rating draws support from its advanced, well-diversified and high-income economy. Canada's political stability, strong governance and institutional strengths also support the rating. Its overall policy framework remains strong and has delivered steady growth and low inflation. 

Unique Feature Helps "Trap" Risk for Canadian PPPs

Canadian public private partnerships (PPPs) are susceptible to cost overruns like other PPPs throughout the world, though a new Fitch Ratings report cites a unique feature commonly seen in Canadian projects that protects lenders by helping to offset some of that risk.

Canadian Credit Card ABS Unaffected by Rising Consumer Debt

Record consumer debt levels in Canada are not anticipated to have an impact on outstanding ratings of Canadian credit card asset-backed securities (ABS) over the medium term. Canadian consumer credit, as measured by debt/disposable income, reached a record of around 175% at YE 2018, up from around 150% in 2007. However, Canadian credit card performance continues to be stable due to strong borrower characteristics and collateral seasoning. 

Canadian Housing Trends Reduce Bank Downside Credit Risk

The sustained cooling of the Canadian housing market as a result of targeted macro-prudential measures reduces the likelihood of a severe shock to the financial system. While banks remain vulnerable to a significant housing price correction, particularly in the greater Toronto and Vancouver metropolitan areas, recent data points to a softening market. 

Big Canadian Banks Face Continued Margin Pressure in 2H19

Canada's big six domestic systemically important banks (D-SIBs) will be challenged in the second half of 2019 by margin pressure from a flattening yield curve and ongoing competition for mortgages

Higher Canadian Covered Bond Cap May Aid Small Bank Funding

The recent revision of the Canadian covered bond issuance cap by regulators to 5.5% from 4.0% of issuer assets is not likely to impact the funding or credit profiles of the existing CB issuers. However, to the extent the cap increase provides smaller banks access to low-cost funding, it would be viewed positively from a credit perspective.

Persistent Deficits Underscore Ontario Fiscal Challenges

The Province of Ontario's (AA-/Negative) plans for continued operating deficits in the context of its substantial debt burden underscore the recognized fiscal challenges the Canadian province faces

Banks in AAA Jurisdictions Face Rising Household Debt Risk

 In Australia, Canada, Norway and Sweden, high household debt amid slowing housing markets represent a growing risk to banks in those countries, which are among the world's most exposed to residential mortgage lending. The major banks also have, to varying degrees, a reliance on wholesale funding, which can increase their vulnerabilities during a market stress.

bnn bloomberg

Central Bank Independence Under Threat Everywhere

James McCormack, Global Head of Sovereign and Supranational Ratings at Fitch, spoke to BNN Bloomberg's Catherine Murray for a look at the catalysts causing central banks to lose some of their independence and what this can mean for global economies including the US and Canada.

rating action

Upgraded: Air Canada to 'BB'; Outlook Stable

The Stable Outlook incorporates macroeconomic concerns and the potential for market weakness if economic conditions were to soften. However, Air Canada's ratings may still trend higher over the longer term based on expectations for improving FCF generation as its capital spending declines following peak levels in 2016 and 2017 due to fewer scheduled deliveries of expensive widebody aircraft. 

BNN

Fitch Mulls Canada's 'AAA' Debt Rating

Charles Seville, Senior Director at Fitch Ratings, talks about Canada's debt rating in the wake of the latest federal budget.

Canada Budget Deficits Still in Line with Falling Debt Ratio

Increased spending and projected deficits in Canada's latest budget remain consistent with a falling federal debt burden, assuming the economy grows near its potential rate and avoids a recession. However, modest fiscal loosening and sustained deficits will increase the economy's exposure to a downturn. 

Canadian Liquidity Proposal May Pressure Small Bank Earnings

Canada's proposed revised liquidity adequacy rules could pressure earnings and competitive positioning of smaller banks and alternative lenders that may be more reliant on brokered deposit funding than their large competitors.

rating action

Canada Affirmed at 'AAA'; Outlook Stable

Canada's 'AAA' ratings balance structural strengths against relatively high general government indebtedness. The rating draws support from its advanced, well-diversified and high-income economy.

Canada Credit Card ABS Finishes 2018 with Continued Solid Performance

Chargeoffs and delinquencies on Canadian credit card ABS fell to near record lows to close out 2018, despite a continued rise in household debt, and Fitch Ratings expects chargeoffs to remain below 3.00% heading into the first quarter of 2019, according to Fitch Ratings' latest credit card index.

Canadian Bank Bail-in Leads to Lower Support Ratings, Floors

Recently implemented bail-in rules for Canadian domestic systemically important banks (D-SIBs) will lead to a lowering of their support ratings (SRs) and Support Rating Floors (SRFs) in first-quarter 2019. 

2019 Outlook: Global Housing and Mortgage

Stretched affordability and overheated home prices in several major cities have been key themes of our global housing and mortgage outlooks for the past five years. Now as part of our 2019 Outlooks series, we take a forward look at this sector for the year ahead.

 

Press Release

Outlooks 2019

2019 Outlook- Headwinds Rising for Canada

Canada ​remains in good shape economically heading 2019, but some stiffer tests are on the horizon, according to Fitch Ratings.​

Canadian CMBS Loan Defaults and Losses Remain Low

Defaults and losses for Canadian CMBS loans remain very low despite the Great Recession, the 2014 global oil price decline and the Fort McMurray wildfires, according to Fitch Ratings in its latest Canadian CMBS loan default and loss study. 

The Diverging Provincial Debt Picture

Senior Director Marcy Block says Canadian debt issues are being felt more acutely at the provincial level and that rising debt in Ontario and Alberta increasingly contrast with debt levels in Quebec.

Canada Growth Helps Debt Ratio Fall As Deficits Persist

Canada's economic growth rates support our view that the gross general government debt (GGGD) ratio will decline, although modest fiscal loosening increases exposure to unexpected downturns, Fitch Ratings says. 

U.S. and Canadian E&P Transactions

Activity continues to slow and Permian volumes and valuations remain robust according to a Fitch Ratings report. View the new interactive Oil & Gas Valuation Heatmap for transaction comparison and deals by county. Compare yearly data and read the full report

Compare Airports by Size, Ratings, and Carrier Hub

Our new airport data map details the financial profiles of Fitch-rated airports in North America using an interactive visualization.
    •  Compare airports by size and type
    •  Filter by rating category to identify peers
    •  View top hubs by airline carrier

Contacts

Andrew Smitiuch

Canada

Andrew Smitiuch

Business

+1 416 703 4824

Fitch Updates Terms of Use & Privacy Policy

We have updated our Terms of Use and Privacy Policies which cover all of Fitch Group's websites. Learn more.