Moody’s affirms Australia

Moody's Investors Service said it affirmed Australia's Aaa long-term issuer and senior unsecured ratings.

The outlook remains stable.

Moody’s said the factors supporting the affirmation include: (a) Robust and stable GDP growth and strong growth potential relative to peers, denoting very high resilience to economic shocks; (b) a moderate, albeit modestly rising, general government debt burden; and (c) strong institutions that preserve macroeconomic and financial stability, although fragmentation in political representation is a hurdle to more effective fiscal consolidation.

The stable outlook reflects the agency’s expectation that, even in the event of shocks, possibly in the housing market and/or to the economy's access to external financing, the resilience of the economy supported by countercyclical macroeconomic policy would allow Australia's credit metrics to remain consistent with an Aaa rating, the agency explained.

Australia's long-term local and foreign-currency bond and deposit ceilings remain at Aaa. The short-term foreign-currency bond and deposit ceilings remain at Prime-1 (P-1).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.