We have observed trends of rising consumer leverage and elevated residential real estate prices in Canada, in conjunction with incremental deterioration of the domestic and global economic outlook. In our view, this poses a risk for Canadian banks given the importance of each bank's consumer credit loan portfolio. We are highlighting the increased potential for future negative rating actions through negative outlook revisions on certain Canadian financial institutions. Support considerations factored into the issuer credit ratings of certain institutions limit the potential for negative rating actions and justify maintaining stable outlooks in certain cases. We are affirming our 'A+' long-term and 'A-1' short-term issuer credit ratings on Bank of Montreal. The stable outlook on BMO reflects the fact that a
