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Ottawa, July 29, 2002
2002-064

Minister Manley Pleased with Standard & Poor’s Decision to Upgrade Canada’s Debt Rating

John Manley, Deputy Prime Minister and Minister of Finance, said today’s decision by Standard & Poor’s to upgrade Canada’s debt rating to the highest level (AAA) shows international confidence in the nation’s strong economy and prospects for robust, sustained growth.

“Standard & Poor’s has clearly recognized Canada’s exceptional economic and fiscal performance,” Minister Manley stated. “Our economy is strong and stable and we have the flexibility to take steps that will improve economic growth and our standard of living.”

Standard & Poor’s has raised Canada’s long-term foreign currency sovereign credit rating to AAA from its previous level of AA+. This revised rating is the highest offered by the respected international credit rating agency.

Today’s announcement by Standard & Poor’s marks the second time this year that Canada’s sovereign credit rating has been raised by a major international credit rating agency. On May 3, 2002, Moody’s Investors Service raised Canada’s credit rating to Aaa (the highest rating) in response to Canada’s improved fiscal balance sheet and excellent long-term growth prospects.

In its analysis of Canada’s current economic situation, Standard & Poor’s states that the upgrade “reflects the results of many years of restructuring in both the private and public sectors that has created a more resilient economy with low inflation, fiscal and current account surpluses, and a healthy trade sector.”

The Standard & Poor’s analysis also offers a positive long-term outlook for Canada’s economy, noting that “the stronger public sector balance sheet, along with policy stability based upon wide political consensus, augur well for long-term growth prospects.” It notes that Canada is forecast to lead the G-7 in economic growth both this year and in 2003.

“Clearly, Canada is on the right track towards strong and sustained economic growth, thanks to the hard work and commitment of all Canadians,” Minister Manley added. “Our policies that have helped us achieve this enviable record continue to be the cornerstones of the Government’s economic program.”

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