Fitch Affirms 6 Big Canadian Banks' Ratings

Fitch Ratings announced Tuesday that it has affirmed the ratings of six large Canadian banks and a financial service cooperative.

The move concerned the Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Toronto-Dominion Bank, Royal Bank of Canada and Desjardins Group.

Fitch, however, revised the outlook for Toronto-Dominion Bank to negative from stable.

The rating affirmations reflect the agency's view that "despite elevated interest rates, stable economic conditions are supportive for bank credit fundamentals and financial performance indicators," Fitch said in a statement.

The agency expects Canada's GDP to grow just 1% this year but rise to 1.5% by 2025 and 2026, with unemployment dropping to 6.1% and 6% by 2025 and 2026, respectively, from 6.2%.

The Bank of Canada's interest rate cuts are expected to be "likely positive for asset quality and loan growth," it said. -