Australia’s AAA credit rating has been reaffirmed by Fitch in an expression of confidence in the Morrison Government’s handling of the coronavirus crisis and our demonstrated record of economic management and in the words of Fitch “commitment to fiscal prudence.”
In its report, Fitch notes that Australia’s “effective macroeconomic policy framework, has supported a long record of stable economic growth prior to the current exogenous shock” and that “substantial fiscal and monetary policy stimulus” has been put in place “which should soften the shock and support the economic recovery.”
Today’s report confirms Australia as one of only 10 countries with a AAA credit rating from all three major ratings agencies.
Fitch recognises the “significant impact the global coronavirus pandemic has on Australia's economy and public finances” and has put our AAA rating on a negative outlook.
Fitch’s action today, in reaffirming our AAA rating, is a reminder of the importance of maintaining our commitment to medium term fiscal sustainability.
Our disciplined economic and budget management saw the Federal Budget return to balance for the first time in 11 years and the Budget was on track to achieve a surplus in 2019-20 before the COVID-19 outbreak.
Our measures are temporary, targeted and proportionate to the challenge we face and will ensure Australia bounces back stronger on the other side, without undermining the structural integrity of the Budget which Australians have worked so hard to restore.