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Australia's AAA rating affirms sound finances and resilient economy

by Staff Reporter7 minute read

While global economic conditions are widely tipped to worsen in 2009 Australia remains well-placed to ride the storm.

Standard & Poor’s yesterday affirmed Australia’s AAA credit rating reflecting its view that our government finances are “sound” and our economy “resilient”.

While Standard & Poor’s forecast that the government would report a cash deficit of about one per cent of GDP in the 08/09 financial year the ratings agency believes “this deficit does not materially alter the robust profile of the country's public finances”.

Standard & Poor’s also commented that while the slowing economy would increase banks’ problem loans, Australian banks should remain profitable, adequately capitalised and with good asset quality by international standards.

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