Australia 'AAA/A-1+' Ratings Affirmed; Outlook Stable

Sound fiscal metrics support our 'AAA' long-term sovereign credit rating on Australia. High commodity prices and inflation, along with strong employment conditions, are narrowing the country's fiscal deficit and slowing borrowing needs. We forecast the general government deficit will average about 1.4% of GDP between fiscals 2024 (year ending June 30) and 2026, ensuring net general government debt remains below 30% of GDP. Our ratings on Australia benefit from its strong institutional settings, wealthy economy, and monetary policy flexibility. Although external indebtedness is high, we expect the current account to be structurally stronger than in the past. We affirmed our 'AAA' long-term and 'A-1+' short-term local and foreign currency sovereign credit ratings on Australia. The stable outlook on the long-term

...- Sound fiscal metrics support our '###' long-term sovereign credit rating on Australia. High commodity prices and inflation, along with strong employment conditions, are narrowing the country's fiscal deficit and slowing borrowing needs. - We forecast the general government deficit will average about 1.4% of GDP between fiscals 2024 (year ending June 30) and 2026, ensuring net general government debt remains below 30% of GDP. - Our ratings on Australia benefit from its strong institutional settings, wealthy economy, and monetary policy flexibility. Although external indebtedness is high, we expect the current account to be structurally stronger than in the past. - We affirmed our '###' long-term and 'A-1+' short-term local and foreign currency sovereign credit ratings on Australia. - The stable outlook on the long-term rating reflects our expectation that fiscal metrics will remain steady over the next two years....

Ratings Action