18 July 2013

Standard and Poor's reaffirm Australia's credit rating

Today, the global credit rating agency Standard and Poor's (S&P) released its annual review of Australia's sovereign credit rating. The result of the review was to affirm the Australian Government's AAA credit rating, with a stable outlook.

The Government welcomes S&P's decision to maintain Australia's AAA credit rating and positive economic outlook.

This decision is further testament to the resilience of the Australian economy and the prudent economic management of the Labor Government.

We remain one of only eight countries to have a AAA credit rating and positive economic outlook from all three major international rating agencies.

S&P said Australia's AAA rating is supported by its, "significant fiscal and monetary policy flexibility, economic resilience, and public policy stability [which] provide Australia with a strong ability to absorb large economic and financial shocks, as was demonstrated during the global recession in 2009".

Echoing the Government's recent statements on the economic challenges ahead, S&P also noted that while the outlook for growth in the economy remains solid, the economy faces some challenges in the near term.

The Government will continue to manage the nation's finances prudently and will work to manage the economic challenges ahead.

18 July 2013