Skip to comments.Canada to keep AAA rating despite coming downgrade wave: Citi
Posted on 04/24/2012 5:20:24 PM PDT by Former Proud Canadian
Canada is forecast to be one of the few countries to keep its illustrious AAA credit rating in the coming years, as ratings agencies get set to start kicking out members from the exclusive club.
Canada is just one of 12 countries which currently maintain a AAA rating from all three major credit agencies.
When you think about Canada maintaining its AAA, well, we will have surpluses, we will have balanced budgets across the board...
The Conservative government expects to return to a budget surplus by the 2015-2016 fiscal year, ... The budget also revealed the Conservative government will shed roughly 19,200 jobs, or 4.8% of the federal workforce.
Citi economists are forecasting that by 2014, Canada will be one of only a few countries that retains the vaunted AAA designation. The others are Germany, the United Kingdom, Switzerland, Sweden, Denmark, Norway and Australia. Current AAA-rated countries, such as France, are likely to fall victim to budget disputes and the ongoing economic damage caused by the eurozones debt crisis.
Maintaining a AAA rating will continue to make Canada an attractive investment choice for foreign investors said Mr. Gregory, though Canadian investments have received no shortage of international investment.
Foreign buyers have scooped up huge quantities of Canadian securities in the past two years. In February, foreign investors gobbled up $12.5-billion in Canadian bonds, marking the biggest monthly acquisition of bonds since May 2010.
...Avery Shenfeld, chief economist for CIBC World Markets, pointed out that so much foreign interest has led to continued strength in the Canadian dollar and has kept it above parity with the U.S. dollar. That, in turn, has hurt some of Canadas export businesses.
(Excerpt) Read more at business.financialpost.com ...
If it were me I would just get rid of the ‘former’
I’m glad I purchased my Canadian oils in the late nineties. The currency strength makes them an even more lucrative investment.