Canada Keeps AAA Rating Despite US Trade Risks
Canada's triple-A credit rating has been reaffirmed by Morningstar DBRS, citing the country's strong macroeconomic policy frameworks and large, diversified economy.
The ratings agency confirmed Canada's long-term foreign and local currency issuer ratings at AAA, as well as its short-term foreign and local currency issuer ratings at R-1 (high), all with stable trends.
Morningstar DBRS noted that while recent deterioration in deficit and debt indicators and macroeconomic headwinds linked to volatile U.S. trade policy pose risks, Canada's credit profile remains strong overall.
The government projects a federal deficit of C$66.9 billion (2.1% of GDP) for 2025-26, narrowing to C$53.2 billion by 2030-31, with federal debt-to-GDP peaking at 41.9% in 2028-29.
The Big Six banks maintain strong capital and liquidity levels, supporting their AA-range ratings.