AUSTRALIA: Moody’s Investors Service affirm Australia’s Aaa Long-Term Issuer and Senior Unsecured Ratings

Friday June 15 2018

Moody’s Investors Service has affirmed Australia’s Aaa long-term issuer and senior unsecured ratings. The outlook remains stable.

The factors supporting the rating affirmation include:

1. Robust and stable GDP growth and strong growth potential relative to peers, denoting very high resilience to economic shocks;
2. A moderate, albeit modestly rising, general government debt burden;
3. Strong institutions that preserve macroeconomic and financial stability, although fragmentation in political representation is a hurdle to more effective fiscal consolidation.

The stable outlook on Australia’s rating reflects Moody’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 a Aaa rating.

Australia’s long-term local and foreign-currency bond

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