S&P cut Australia outlook to negative from stable

Rating is AAA still.

This is not wholly unexpected from S&P

AUD down a few pips on the announcement

S&P cite:

  • reflects substantial deterioration of Australia's fiscal headroom

More:

  • large Australian budget deficits likely to be temporary
  • virus a severe economic c and fiscal shock
  • government deficit to average 7.5% of GDP in 20/21
  • annual growth to fall to 1.3% in FY 2020