The ratings on Canada reflect Standard&Poor's Ratings Services' opinion of the country's strong public finances, its relatively diversified economy, the stability of public policy, and the financial sector's soundness. 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 deficits as a result of the developing recession. In our opinion, the general government deficit will be contained to below 4% of GDP in 2009 and 2010, as Canada joins many other highly rated governments in attempting to mitigate the effect of the global economic downturn. Nevertheless, regardless of who prevails
