This report supplements our research update "Canada 'AAA/A-1+' Ratings Affirmed; Outlook Remains Stable," published on Nov. 5, 2014. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. Our rating on Canada reflects its strong public institutions, prosperous and resilient economy, fiscal and monetary flexibility, and effective policymaking. It also incorporates Canada's high dependence on the U.S. economy, as well as possible asset quality problems in the financial system due to high consumer debt. Canada's track record of dealing with fiscal issues, including pensions at both the federal and provincial levels, on a
