TORONTO (Standard&Poor's) May 18, 2007--Standard&Poor's Ratings Services today said it affirmed its 'AAA' long-term foreign and local currency sovereign credit ratings on Canada. Standard&Poor's also affirmed its 'A-1+' short-term sovereign credit ratings on Canada. The outlook is stable. "The ratings on Canada rest on its sound public finances, its diversified economy, and its political stability," said Standard&Poor's credit analyst Nikola Swann. Canada has undergone a remarkable fiscal consolidation in the past 15 years, moving from general government deficits of 8% of GDP to surpluses of 1%-3%. Although fiscal policy is somewhat looser under the minority Conservative government of Prime Minister Stephen Harper, there is still significant fiscal discipline, particularly compared with other
