MELBOURNE (Standard&Poor's) May 13, 2003--Standard&Poor's Ratings Services said that tonight's Commonwealth Budget is consistent with its 'AAA' long-term sovereign rating on Australia. The strong fiscal position of government in Australia was a fundamental factor underlying Standard&Poor's raising of the foreign currency rating on Australia to 'AAA' from 'AA+' on Feb. 17, 2003. The cash surplus of A$2.2 billion in tonight's budget meets Standard&Poor's expectation at the time of the rating upgrade that the Commonwealth Government's prudent fiscal stance would be maintained. Moreover general government net debt remains very low, at less than 3% of GDP and well below the 20% of GDP median for 'AAA' rated countries.
