“Fitch Ratings has downgraded Canada's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'AA+' from 'AAA'”, the statement said.
Fitch added that the rating outlook is stable and Canada’s banking system, already assigned a negative rating and sector outlook, would be unaffected by the downgrade.
The company said it expects Canada’s consolidated gross general government debt to GDP ratio to rise to 115.1 percent this year - up more than 30 percent from 88.3 percent of GDP in 2019 - before stabilizing in the neighborhood of 120 percent in the years 2022-2024.
Canada's Office of the Parliamentary Budget Officer has said it estimates the country’s deficit will increase to $188 billion in the fiscal year 2020-2021 to 12.7 percent of GDP - the largest on record.