High fiscal flexibility, underpinned by low public debt and strong fiscal discipline A wealthy, open, and resilient economy Stable institutional framework and political consensus on fiscal, monetary, and exchange-rate policies High external imbalances High household indebtedness Some concentration of exports in the potentially volatile agriculture and mining sectors The 'AAA/A-1+' foreign and local currency sovereign credit ratings on the Commonwealth of Australia reflect our opinion of the country's sound governmental finances, resilient (albeit slowing) economy, and a transparent policy environment characterized by strong institutions. These strengths are moderated by the high level of private-sector external indebtedness at a time of heightened stress in the global financial system. Public sector finances underpin the ratings on the Australian government. The central government
