On Jan. 13, 2009, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' foreign and local currency sovereign credit ratings on Canada. The outlook is stable. The ratings on Canada reflect our opinion of its sound public finances, its relatively diversified economy, the stability of public policy, and the soundness of its financial sector. We believe that Canada has undergone a remarkable fiscal consolidation in the past 15 years, moving from general government deficits of 8% of GDP to surpluses of up to 3%. That said, we expect a temporary return to general government deficits between 1% and 2% of GDP, in 2009 and 2010, respectively, as Canada joins many other highly-rated governments in attempting to mitigate the effect of recessionary
