S&P comments on Australia crossing the wires:
- Australia rating benefits from wealthy, resilient economy
- Australia rating benefits from monetary, fiscal policy stability
- Australia real per capita GDP growth to average 2.9% 2014-17
- Australia has the ability to absorb economic and financial shocks
–
Headlines on Bloomberg
–
More:
- S&P affirmed ratings on Australia at ‘AAA/A-1+’
- Stable Outlook
- Sovereign ratings on Australia benefit from its strong institutional settings, its wealthy and resilient economy, and high degree of monetary and fiscal policy flexibility, S&P says in statement
- S&P expects Australia’s growth to remain a little below trend for some time
Risks remains for growth prospects, prosperity and credit qualify largely from growing dependence on trade with China
- “If demand for Australia’s resources were to weaken sharply, there could be a range of disorderly dislocations in the economy, including in its labor and property markets”
- “We could lower the ratings if external imbalances were to grow significantly more than we currently expect, either because the terms of trade deteriorates quickly and markedly, or the banking sector’s cost of external funding increases sharply.”
