Shortly after Liberals secured another minority government, a credit rating agency says the spending plans outlined during the campaign will put pressure on Canada’s credit profile.
The spending promises made by Prime Minister Mark Carney point to “considerable fiscal loosening that would exacerbate already expanding fiscal deficits,” Fitch Ratings said in an April 29 note.
Credit ratings are used by investors to help assess the ability of an entity, in this case a country, to repay a debt or meet a financial obligation, such a repaying holders of sovereign bonds.
The Liberals’ costed platform promises $129 billion in new spending over the next four years and consecutive deficits which would add nearly $225 billion to the federal debt….