December 8, 2017 / 4:25 PM / 8 months ago

BRIEF-Fitch Says North America Sovereign Outlook Stable, Robust To Public, Private Balance-Sheet Risks​

Dec 8 (Reuters) - Fitch:

* FITCH SAYS NORTH AMERICA SOVEREIGN OUTLOOK STABLE, ROBUST TO PUBLIC, PRIVATE BALANCE-SHEET RISKS​

* FITCH SAYS U.S. POLICY ENVIRONMENT IN 2018 TO BE CHARACTERISED BY FISCAL LOOSENING, MONETARY POLICY TIGHTENING, BUT FACTORS UNDERPINNING ‘AAA’ RATING REMAIN

* ‍FITCH SAYS RESERVE CURRENCY STATUS AND “EXCEPTIONAL” FINANCING FLEXIBILITY CONTINUE TO SUPPORT U.S. SOVEREIGN RATING AT ‘AAA’ WITH A STABLE OUTLOOK

* FITCH SAYS A FAILURE TO RAISE U.S. DEBT LIMIT REMAINS A TAIL RISK, BUT STILL MOST SIGNIFICANT SHORT-TERM RISK TO ‘AAA’ RATING​

* FITCH SAYS DEBT DYNAMICS ARE ALSO NEGATIVE, WHICH COULD PUT PRESSURE ON U.S. SOVEREIGN CREDITWORTHINESS OVER MEDIUM TO LONG TERM​

* FITCH SAYS IN CANADA, FITCH EXPECTS GROWTH TO SLOW TO AROUND 2 PERCENT IN 2018 AFTER A VERY STRONG PERFORMANCE IN 1H17

* FITCH SAYS CANADA’S MAIN WEAKNESS RELATIVE TO PEERS IS ITS HIGH GENERAL GOVERNMENT DEBT, BUT DEBT RATIO IS FALLING

* ‍FITCH SAYS THE MOST SUBSTANTIAL SHORT-TERM ECONOMIC RISK FOR CANADA IS NAFTA ABROGATION, GIVEN COUNTRY’S HIGH TRADE EXPOSURE TO U.S.​

* ‍FITCH SAYS PROMISED CORPORATE AND PERSONAL TAX CUT WILL GENERATE A MODEST GROWTH IMPACT IN 2018 AND 2019 IN U.S.

* FITCH SAYS FEDERAL RESERVE IN U.S. WILL GRADUALLY RAISE RATES & REDUCE SIZE OF BALANCE SHEET, WITH INFLATIONARY PRESSURES STILL “WELL UNDER CONTROL” Source text for Eikon:

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