TORONTO (Standard&Poor's) Feb. 27, 2008--Standard&Poor's Ratings Services today said that the Conservative government's Budget Plan 2008, which was presented yesterday afternoon, will not affect the ratings on Canada (AAA/Stable/A-1+). "The budget won't affect the ratings even though the federal government is planning for smaller surpluses than in recent years," said Standard&Poor's credit analyst Nikola Swann. The budget foresees debt reduction of C$10.2 billion in fiscal year 2007-2008 (ending March 31), C$2.3 billion in 2008-2009, and C$1.3 billion in 2009-2010. Both weaker economic growth and tax reductions will reduce revenues in the coming fiscal year as expenses continue to grow. The budget matches our previous expectations (for more information, please see the full analysis on
