Australia maintains triple-A credit rating

Ratings agency S&P Global has affirmed Australia’s triple-A long-term sovereign credit rating and said the outlook is stable.

The rating agency said on Wednesday afternoon that high commodity prices and inflation, along with strong employment conditions, are narrowing the country’s fiscal deficit and slowing borrowing needs. S&P forecasts the general government deficit will average about 1.4 per cent of GDP between fiscal 2024 and 2026, ensuring net general government debt remains below 30 per cent of GDP.

The agency says Australia’s historically low unemployment rate of about 3.7 per cent in July means higher costs and mortgage payments can be absorbed by households. S&P say it could lower its ratings if the general government deficit widened materially, causing net debt and interest costs to rise.

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Source: SkyNewsAust - 🏆 7. / 78 Read more »