OVERVIEW The sovereign credit ratings on Australia benefit from the country's strong institutional settings, its wealthy and resilient economy, and significant monetary and fiscal policy flexibility. The country's high external and household indebtedness, as well as vulnerability to weakening commodity export demand, moderate these strengths. We have affirmed the ratings on Australia at 'AAA/A-1+', and the outlook remains stable. The stable outlook is based on our assumption that Australia's continued conservative budgetary policies will result in consistently narrowing deficits over the forecast horizon. RATING ACTION On July 24, 2015, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' unsolicited sovereign credit ratings on the Commonwealth of Australia. The outlook remains stable. RATIONALE The rating affirmation on Australia is based on our
