The Australian press is carrying conflicting reports this morning about ‘threats’ to Australia’s AAA rating. The first report is somewhat sensationalized – reflected in a lack of volatility in the Australian markets.
The Australian carries the shocking headline: Nation’s credit rating under threat without pledge to cut deficit
Alan Kohler counters in Business Spectator in a restrained manner with:
In any case there is very little actual threat to Australia’s AAA rating, unfortunately. The headlines on this morning’s stories quoting S&P associate director Craig Michaels could just as easily have focused on his other statement that Australia’s credit rating is not under threat from the current situation of small and declining deficits, even if they extend to 2016-17.