A wealthy, open, and resilient economy and a financial system that appears to be sound. High fiscal flexibility, underpinned by low public debt and strong fiscal discipline. Political stability, strong institutions, and transparency in economic decision-making. High current account deficits and external debt burden. High vulnerability to weakening commodity export demand, particularly from China. High household debt. The unsolicited ratings on the Commonwealth of Australia reflect Standard&Poor's Ratings Services' view of the country's ample fiscal and monetary policy flexibility, economic resilience, public policy stability, and a financial sector that appears to be sound. We believe these factors demonstrate Australia's strong ability to absorb large economic and financial shocks, such as the global recession in 2009. These strengths are
