On Jan. 30, 2006, 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 'AAA' rating on Canada rests on its sound public finances, its diversified economy, and its political stability. Canada has undergone a remarkable fiscal consolidation in the past 13 years, moving from deficits of more than 5% of GDP to surpluses of up to 2% of GDP. Standard&Poor's expects fiscal discipline to be maintained under the minority government to be formed under incoming Prime Minister Stephen Harper. Nevertheless, fiscal surpluses, which have prevailed for the past eight years, are
