KBRA Affirms AAA/K1+ Ratings for Canada; Outlook Stable
21 Feb 2025 | New York
KBRA affirms the long-term issuer ratings of AAA for Canada. KBRA also affirms the short-term ratings of K1+ of the sovereign. The Outlook on the long-term ratings is Stable.
| This credit rating is an unsolicited credit rating. | |
|---|---|
| With Rated Entity or Related Third-Party Participation | Yes |
| With Access to Internal Documents | No |
| With Access to Management | Yes |
KBRA's affirmation of Canada's ratings reflect its large, wealthy, diversified, and resilient economy, robust institutional framework, low and affordable net government debt, global geostrategic importance, and fiscal flexibility. The Stable Outlook rests on KBRA’s expectation for a gradual improvement in government debt ratios, as well as the maintenance of strong access to liquidity. KBRA’s view also reflects financial system health, and the sound practices of financial institutions and mortgage insurers that cushions risks from elevated household debt and weakened housing affordability. Tariffs – still unknown - would weaken growth, but Canada’s strong fundamentals, including a very low net debt, provide resilience.
KBRA’s Unsolicited Ratings Policy and Procedure can be found on the Canadian Disclosure page.
To access ratings and relevant documents, click here.
Click here to view the report.