After a potentially fatal credit watch mark to the credit rating of Vancouver, B.C., the host of the 2010 Olympic games, Standard and Poor’s released credit judgment Tuesday, reaffirming an AAA rating for Canada’s federal government.

Vancouver City announced that it may have to absorb large amounts of debt to finance the completion of Olympic games properties which were expected to be developed by a New York-based company until the financial crisis prevented access to adequate liquid capital for the company.

“Like the other four ‘AAA’ rated G7 sovereigns, we believe that Canada has the political capacity and will to respond quickly to changing conditions, and it has a relatively diversified economy,” Standard and Poor’s said in the adjustment, the other four are the United States, Britain, Germany and France, “It also has a stable financial system, and is the only of the five that entered the current crisis in fiscal surplus on a general government basis.”

Many analysts believe that Canada’s banking system is the strongest internationally, a record for stability and a seemingly solid asset platform at the current time grants Canada the historical bonus of routine strength. Standard and Poor’s said that significantly deteriorating financial market variables would be required to sufficiently damage the Canadian government’s ability to handle market failures.

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