Fitch Ratings has today reaffirmed Australia’s triple-A sovereign credit rating with a stable outlook.
This follows a formal review of Australia’s credit rating by Fitch Ratings in March that also affirmed our rating as triple-A with a stable outlook, underpinned by the Australian economy’s high income, strong institutions and effective governance.
Australia’s triple-A rating status by all major ratings agencies continues to reflect our country’s strong economy, policies and institutions. These strengths have seen the Australian economy remain resilient, continuing to grow and create jobs in the face of a range of shocks and headwinds in the global economy.
Australia continues to outperform the world’s advanced economies, growing faster than the United States and the United Kingdom, more than twice the rate of Canada - a comparable resources economy - and still well above the OECD average.
Retaining Australia’s triple-A sovereign rating keeps borrowing costs low for the Government and for businesses and consumers across the wider economy.
Any negative change to the nation’s credit rating would have flow on effects for state and territory governments and our financial sector.
While Fitch has maintained a stable outlook on Australia’s triple-A rating at this time, it and the other two major agencies – Moody’s and S&P – have expressed concerns that the composition of the Parliament following the election will make implementing fiscal consolidation difficult.
We must ensure the Government continues to underpin confidence in the economy by living within our means and avoiding higher debt and deficits that will hurt our economy and threaten our triple-A credit rating.
The Coalition took a clear economic plan to the Australian people at the election that will grow the economy and will not increase the deficit.
The Government will work constructively with the Parliament to implement our economic plan, ensuring we maintain a strong economy.