Stable political institutions, predictable policymaking, and a highly resilient economy with strong monetary and fiscal flexibility underpin Canada's credit strengths. Canada's potential vulnerabilities include possible asset quality problems that could arise in the financial system from high levels of household credit and dependence on the U.S. economy. We are affirming our 'AAA/A-1+' sovereign credit ratings on Canada. The stable outlook reflects our expectation of continuity in economic policy over the coming three years, including past the next federal elections that must be held before late 2015. On Nov. 5, 2014, Standard&Poor's Ratings Services affirmed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on Canada. The outlook on the long-term rating remains stable. The transfer and convertibility (T&C)
