Australia has bucked the global trend and had its credit rating taken off negative watch in response to what agency S&P says was the government’s swift and decisive repose to the coronavirus pandemic.
In a recent statement S&P revised its long-term rating for Australia from negative to stable.
“At the same time, we affirmed our AAA long-term and ‘A-1+’ short-term unsolicited sovereign credit ratings on Australia,” it said in a statement issued Monday 7/6.
“The government’s swift and decisive fiscal and health response to contain the pandemic and limit long-term economic scarring has seen the economy recover quicker and stronger than we previously expected,” S&P says.
“We are more confident that the general government’s fiscal deficits will narrow toward 3 percent of GDP during the next two to three years after a 10 percent deficit in fiscal 2021.”
”The government’s policy response and strong economic rebound have reduced downside risks to our economic and fiscal outlook for Australia. As a result, we are revising the outlook to stable and affirming our AAA/A-1+ long- and short-term local and foreign currency ratings.
“Australia has a strong track record of managing major economic shocks, moderating our concern over its high level of external and household debt.”