... stable macroeconomic environment allowed the country to emerge from the global financial crisis relatively unscathed. However, certain signs evidencing a slower pace in economic growth have begun to crystallize more recently. Mounting household debt primarily tied to rapidly rising mortgage borrowing and disappointing productivity growth are some of the key challenges facing Canada today. Yet, Fitch Ratings believes Canadian credit card portfolios will remain unaffected by these adversities with no signs of impending deterioration. Consumer Behavior Offsets Market Conditions: Consumer credit card usage and payment trends compared to the U.S. differ on many accounts. The percentage of Canadians who repay their credit card balances in full each month is greater. Canadian households also carry a lower number of credit cards on average when compared to the U.S., which overall kept total spend at lower levels and card usage in check. While consumer...
