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Fitch Ratings Inc., an American credit rating agency, recently stripped Canada of its AAA rating and downgraded it to AA+, according to Bloomberg.
The demotion is a result of how the federal government has handled their response to the COVID-19 pandemic. The pandemic has raised the country's national debt to 115.1 percent of its GDP for 2020, in 2019, that number was 88.3 percent.
Fitch Ratings Inc. did give Canada a stable outlook however, calling Canada's debt-to-GDP stabilizing over the medium term.
In March of 2019, Fitch published a report that warned Canada, that they may lose their AAA rating at both the federal and provincial levels as the debt levels were rising to a level that would be "incompatible" with the sought after rating. That warning came a full year prior to the pandemic taking hold of the economy.
Canada's AAA rating has been under much review regarding fiscal spending since the pandemic began but former Kevin Page, the former Parliamentary Budget Officer told BNN Bloomberg back in April that Canada losing its AAA rating was very unlikely.