“The club of countries with AAA ratings from S&P, Moody’s, and Fitch is small,” strategists at TD Securities, including Andrew Kelvin, wrote in a research note. “We could see some investment flows diverted from Canada” to those that retain the ratings and have positive nominal 10-year bond yields, they said.
(June 25): Canada’s loss may be Singapore’s gain.
Fitch Ratings stripped the North American nation of an AAA sovereign rating on Wednesday, reducing the number of economies to just nine that all receive top sovereign ratings from the three major agencies.
