Moody’s Investor Services is renewing Canada’s triple-A debt rating, the highest possible.
In its annual report on Canada's sovereign ratings, the firm said the Aaa rating was warranted due to the country’s high degree of economic resiliency, efforts by Ottawa and the provinces to deal with their debt ratios over the coming years and other factors.
The economy’s very high degree of resiliency is demonstrated by a high per capita income, the large scale of the economy, and its diversity, says the Moody’s report. Natural resource industries, a competitive manufacturing sector, and a well-developed and well-regulated financial market also support the country’s resiliency.
While Canada’s public finances deteriorated as a result of the global financial crisis, the federal government and the provinces are now on a track of fiscal consolidation that will improve general government debt ratios over the next few years, according to Moody’s.
Although general government debt, including the debt of the provinces and municipalities, is similar to that of other large Aaa-rated countries, the federal government’s debt position by itself is relatively low. As the provinces are highly rated, Moody’s considers the contingent liability from this source to be low, despite the relatively large size of provincial debt.
Canada’s current account balance returned to surplus in 1999 and remained there until 2008, bringing down the reliance on foreign capital inflows. This has risen somewhat in the past two years but is still not considered a risk to financial stability. Canada’s susceptibility to event risk is low and is related to the housing market and to Quebec’s sovereignty issue.
S&P affirms Canada rating, lauds fiscal discipline
Reuters) - Ratings agency Standard and Poor's affirmed Canada's AAA rating on Friday and lauded the country's strong finances compared with its Group of Seven peers.
The review stood in sharp contrast to growing pressure on the ratings of many Western countries, highlighted by this week's downgrade to Greece's sovereign debt by Moody's Investors Service. [ID:nLDE63L28G]
Standard & Poor's affirmed Canada's AAA long-term and A-1+ short-term sovereign credit ratings with a stable outlook.
"Canada has what we view as strong public finances, a relatively diversified economy, stable public policy, and a sound financial sector," the agency said in a statement.
"The stable outlook reflects our opinion that Canada has the political capacity and will to respond quickly to changing conditions, and the strongest fiscal position of the five 'AAA' rated G7 sovereigns."
The other G7 nations with AAA ratings are the United States, France, Germany and Britain.
S&P cut the outlook on Britain's AAA rating to "negative" on May 21, 2009, a move that typically carries a one in three chance of a downgrade. [ID:nLL292085]
Some analysts have speculated the top-tier credit rating of the United States could be cut one day, an idea rejected by U.S. Treasury Secretary Timothy Geithner. [ID:nN16225360] [ID:nN18366282].
Canada's Conservative government, in presenting its annual budget last month, pledged to turn off the stimulus tap and curtail spending sharply after the economy recovers. [ID:nCFB000108]
"We expect the prevailing consensus on the need for robust public finances, across Canadian regions and political parties, to avoid a return to recurring, structural deficits, in the medium term," S&P said.
The agency also said Canada's financial system is well-developed and sound. The nation's banks did not require government bailouts during the economic crisis and have been ranked as the world's soundest by the World Economic Forum. (Reporting by Jeffrey Hodgson; editing by Rob Wilson)
CIC: COME TO CANADA WIZARD WORKING ITS MAGIC
Prospective immigrants and visitors to Canada now have a new interactive web tool at their fingertips to help them determine if they are eligible to come to Canada. Citizenship, Immigration and Multiculturalism Minister Jason Kenney announced today the launch of the Come to Canada Wizard.
“We understand that our application processes can be complex, but this new tool is a major service improvement,” said Minister Kenney. “The Wizard will make it easier for potential immigrants and visitors to navigate the application process.”
“The Wizard should also reduce applicants’ reliance on immigration consultants and hopefully will make the Department more efficient by decreasing calls to our Call Centre,” Minister Kenney added.
The Wizard simplifies the application process by matching applicants with the federal immigration option that best suits their specific circumstances. The Wizard does this by asking applicants a series of questions and, based on the answers, it provides the best options for them.
The Wizard leads applicants to a results page that breaks down the application steps and provides instructions and forms.
To view the Wizard, go to www.cic.gc.ca/cometocanada.
Unemployment rate in Saskatchewan unchanged, lowest in Canada
No change in unemployment rate in Saskatchewan, remains lowest in Canada.
Photo Credit: -, Global News
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Saskatchewan’s unemployment rate remained steady in July as the province continues to lead Canada with the lowest unemployment rate in Canada.
New numbers released by Stats Canada on Friday has the unemployment rate in the province at 4.9 per cent for July 2011, unchanged from June and down 0.2 per cent from the same time last year. The number of unemployed people actually rose to 27,100, an increase of 300 from June.
Employment in the province also increased in July, with 1,600 more people working than in the previous month. Full-time employment increased by 4,500 while there were 2,900 less people working part-time.
Saskatoon’s unemployment rate dropped 0.1 per cent from the previous month to 5.4 per cent, the fourth lowest in the country for a major centre. Regina held steady at 5.2 per cent, the second lowest in Canada.
"Today's numbers show that Saskatchewan's economy remains strong and steady despite the economic uncertainty south of the border and in other parts of the world," Advanced Education, Employment and Immigration Minister Rob Norris said.
While the opposition NDP was happy to see an increase in jobs, NDP Critic for Education, Employment and Immigration Cam Broten was concerned about the number of unemployed people.
“Clearly, the overall picture released by Statistics Canada this morning is not entirely a pretty one,” Broten said. “With nearly 30,000 people looking for work and with significant job losses in key regions and sectors, there is certainly cause for concern in the latest statistics.”
However, Norris remains optimistic about the future, pointing to job opportunities all across the province and continued growth in the economy.
“Seven major economic forecasters place Saskatchewan's real GDP growth rate at 3.7 per cent in 2011, second highest in Canada."
The unemployment rate in Canada for July was 7.2 per cent.
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