The 'AAA/A-1+' foreign and local currency sovereign credit ratings on the Commonwealth of Australia (Australia) are supported by Australia's resilient economy, which has benefited from past structural reforms that have boosted flexibility and productivity. These strengths are partly offset by the high level of private sector external indebtedness and moderate economic concentration in commodities. Australia has one of the best fiscal positions globally, distinguished by high funding of government pension liabilities and low gross debt estimated to be 4.4% of GDP at year-end 2007. Despite some spending annoucements in advance of the general election on Nov. 24, 2007, Australia's fiscal position is expected to remain strong. A commitment to fiscal discipline by the new government, and other levels of government,
