MELBOURNE (Standard&Poor's) May 9, 2006--Standard&Poor's Ratings Services said that today's Australian federal government's budget is consistent with the 'AAA' long-term foreign and local currency sovereign credit ratings on the Commonwealth of Australia. 'AAA' is the highest long-term rating assigned by Standard&Poor's. "The budget allows for personal income tax cuts and new spending initiatives," said Standard&Poor's credit analyst Kyran Curry. "Nevertheless, the budget is projected to remain in surplus, maintaining the Australian government's extremely strong fiscal position, which underpins its 'AAA' rating." The main risk to the 'AAA' ratings remains the country's chronic current account deficit and resulting high level of external debt. "While the high level of external debt will now mainly
