Fitch Ratings has affirmed Canada's long-term foreign and local currency IDRs at 'AAA' on Tuesday. The rating outlook is stable.

"Canada's 'AAA' rating draws support from its advanced, well diversified and high-income economy. Its political stability, strong governance and institutional strengths support the rating. Its overall policy framework remains strong and has delivered steady growth and low inflation," Fitch said.

Fitch noted that falling oil prices since the second half of year 2014 has hit investment in the oil sector.

The agency also said that high levels of household debt and pockets of real estate overvaluation pose risks to Canada's economy, but the risks are manageable.