Australia’s Aaa credit rating remains safe in spite of a deterioration in fiscal outlook, Moody’s Investors Service said on Tuesday. Federal government forecasts of lower economic growth and higher fiscal deficits were “clearly credit negative” but don’t change its stable outlook, the credit-rating agency said.
“As Moody’s has always said the Australian government has very low debt levels as a starting point and the larger deficit in the current fiscal year–while leading to a rise in debt–is not likely to change Moody’s thinking about the Aaa rating of Australia,” Moody’s senior vice president Steven Hess said.
Australia will still be in a relatively favorable position compared with most Aaa-rated nations, Mr. Hess added.
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