Canada's ratings reflect: A diversified, export-oriented, highly developed economy, recently strengthened by improving macroeconomic balances. An improving fiscal performance at all levels of government. Recent strong GDP growth and budget surpluses at the federal and provincial levels have reduced Canada's general government debt to a projected 64% of GDP in 2001, compared to over 80% three years earlier. A stable political system, which minimizes potential uncertainties posed by the sovereignty movement in Quebec, and a strong political consensus on prudent economic policies. The ratings are constrained by: The legacy of a high, but declining, fiscal debt burden. Despite recent budget surpluses, Canada's general government debt is still projected to be at least 10 percentage points higher as a share of
