Bulletin: Australia 'AAA' Rating Can Absorb Growing Deficit

MELBOURNE (S&P Global Ratings) July 23, 2020--S&P Global Ratings today said the treasurer's economic and fiscal update released this morning is consistent with the 'AAA' rating and negative outlook on Australia (see "Australia Outlook Revised To Negative As COVID-19 Outbreak Weakens Fiscal Outcomes; 'AAA/A-1+' Ratings Affirmed," published April 8, 2020). The extension and refinement of the government's JobKeeper wage subsidy program and JobSeeker unemployment benefit are within the tolerances of our current rating, given that the cost of the JobKeeper program to date has been materially lower than originally budgeted in March. We expect the government will continue to implement specific industry support initiatives such as the JobTrainer skills package, HomeBuilder, the arts and culture package, and film and television

...July 22, 2020 MELBOURNE (S&P Global Ratings) July 23, 2020--S&P Global Ratings today said the treasurer's economic and fiscal update released this morning is consistent with the '###' rating and negative outlook on Australia (see "Australia Outlook Revised To Negative As COVID-19 Outbreak Weakens Fiscal Outcomes; '###/A-1+' Ratings Affirmed," published April 8, 2020). The extension and refinement of the government's JobKeeper wage subsidy program and JobSeeker unemployment benefit are within the tolerances of our current rating, given that the cost of the JobKeeper program to date has been materially lower than originally budgeted in March. We expect the government will continue to implement specific industry support initiatives such as the JobTrainer skills package, HomeBuilder, the arts and culture package, and film and television funding. Nevertheless, we expect that these spending measures will only temporarily weaken Australia's fiscal metrics. The '###' rating on Australia reflects...

Bulletin