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Ottawa, December 16, 2002
2002-105

Minister Manley Welcomes Upgrade by Dominion Bond Rating Service

John Manley, Deputy Prime Minister and Minister of Finance, is pleased to note that Dominion Bond Rating Service (DBRS) is the latest credit-rating agency to upgrade the rating on Canada’s foreign currency debt to Triple-A (AAA), DBRS’s highest credit-rating level.

“I am pleased that DBRS has joined Moody’s Investors Service and Standard & Poor’s in restoring Canada’s top credit standing. This reflects our commitment to debt reduction and prudent spending,” said Minister Manley.

The Canadian-based credit rating agency noted that its upgrade decision reflected the sharp decline in Canada’s foreign indebtedness. DBRS added: “Despite the global economic slowdown, the Government continued to perform strongly in 2001-02, ending the year with a fifth consecutive surplus estimated at $8.9 billion. The sound performance translated into an $8.9-billion decline in net debt to $536.5 billion or 49.1 per cent of GDP, a marked improvement over the mid-1990s.”

Looking ahead, DBRS forecasts that Canada will remain in a surplus position in 2002-03, with the net debt-to-GDP ratio expected to decline to 46.6 per cent. This would be the lowest debt level since the mid-1980s.

“Our commitment to fiscal discipline remains clear,” Minister Manley stated. “We will continue to effectively manage the nation’s finances to reduce our debt burden while funding programs that address the priorities of Canadians.”

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