In our view, Canada's chief credit strengths include the effectiveness, stability, and predictability of its policymaking and political institutions, the resilience of its economy, and the strength of its monetary and fiscal flexibility. We view Canada's chief credit weakness as its high dependence on the U.S. economy and U.S. financial conditions. We are affirming our 'AAA/A-1+' sovereign credit ratings on Canada. The stable outlook reflects our base case expectation that Canada's credit strengths will continue to outweigh its credit weaknesses. On Dec. 10, 2012, 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 is stable. The transfer and convertibility (T&C) assessment of Canada is 'AAA'. Our
