MELBOURNE (Standard&Poor's) May 8, 2007--Standard&Poor's Ratings Services said that today's 2007–08 Commonwealth Budget maintains sound public sector finances and is consistent with the 'AAA' long-term foreign and local currency sovereign credit ratings on Australia. The 'AAA' rating is the highest long-term rating assigned by Standard&Poor's. "The budget provides for another round of tax cuts and a broad range of election-year spending initiatives," said Standard&Poor's credit analyst Kyran Curry of the Sovereigns&International Public Finance Ratings group. "Nevertheless, high taxation revenues associated with a strongly performing economy has enabled the budget to remain in surplus, which is reflected in the net creditor position of the Australian federal government." Despite spending pressures in
