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Canadian bank stocks on fire, despite downgrades

Investors in Canadian bank stocks could not care less about the recent rating downgrades to the Big Six.

After Moody’s Investors Service downgraded Royal Bank of Canada last year, and then cut the debt rating for five of the country’s six biggest banks last week, citing concerns about about consumer debt levels and a risk of a drop in housing prices, the banks are now trading near or above their post-crisis peaks, with some nearing their all-time highs.