This report supplements our research update "Canada 'AAA/A-1+' Sovereign Credit Ratings Affirmed; Outlook Is Stable," published on Nov. 13, 2013. 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. The ratings on Canada reflect its strong public institutions, prosperous and resilient economy, fiscal and monetary flexibility, and effective policymaking. They also incorporate the sovereign's high dependence on the U.S. economy. GDP is likely to grow 1.7% in 2013 and accelerate above 2% next year. Economic recovery in the U.S. will sustain growth. However, domestic demand will likely exceed GDP growth in 2013
