June 24, 2020 / 5:09 PM / 9 days ago

BRIEF-Fitch Downgrades Canada's Ratings To 'AA+'; Outlook Stable

June 24 (Reuters) -

* FITCH DOWNGRADES CANADA’S RATINGS TO ‘AA+’; OUTLOOK STABLE

* FITCH SAYS HAS DOWNGRADED CANADA’S LONG-TERM FOREIGN CURRENCY ISSUER DEFAULT RATING (IDR) TO ‘AA+’ FROM ‘AAA’

* FITCH SAYS CANADA’S RATING DOWNGRADE REFLECTS DETERIORATION OF PUBLIC FINANCES IN 2020 RESULTING FROM CORONAVIRUS PANDEMIC

* FITCH SAYS CANADA WILL RUN A MUCH EXPANDED GENERAL GOVERNMENT DEFICIT IN 2020 AND EMERGE FROM RECESSION WITH MUCH HIGHER PUBLIC DEBT RATIOS

* FITCH SAYS STABLE OUTLOOK REFLECTS FITCH’S EXPECTATION THAT CANADA’S CONSOLIDATED GROSS GENERAL GOVERNMENT DEBT/GDP WILL STABILIZE OVER MEDIUM TERM

* FITCH SAYS EXPECTS CORONAVIRUS RESPONSE TO RAISE CANADA’S CONSOLIDATED GROSS GENERAL GOVERNMENT DEBT TO 115.1% OF GDP IN 2020

* FITCH SAYS EXPECTS CANADA’S CONSOLIDATED GROSS GENERAL GOVERNMENT DEBT/GDP RATIO TO BROADLY STABILIZE AT 120%-121% OF GDP IN 2022-2024

* FITCH SAYS EXPECTS CANADA’S GENERAL GOVERNMENT DEFICIT TO WIDEN TO 16.1% OF GDP IN 2020

* FITCH ON CANADA SAYS CURRENT CRISIS WILL LIKELY INCREASE NEED FOR FEDERAL SUPPORT OF PROVINCES

* FITCH SAYS THE BANK OF CANADA’S MONETARY POLICY RESPONSE TO CORONAVIRUS HAS BEEN SUBSTANTIAL

* FITCH SAYS PANDEMIC LOCKDOWN MEASURES & DEPRESSED OIL DEMAND WILL CAUSE A SEVERE RECESSION OF CANADIAN ECONOMY WITH 7.1% GDP CONTRACTION IN 2020

* FITCH SAYS IMPROVING GLOBAL TRADE, COMMERCE AND DOMESTIC LABOR MARKET CONDITIONS ARE EXPECTED TO LEAD A 3.9% GDP RECOVERY FOR CANADA IN 2021 Source text for Eikon:

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