On May 18, 2007, Standard&Poor's Ratings Services 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. 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 highly rated countries. Fiscal surpluses, which have prevailed for the past 10 years,
