The foreign currency rating on the Commonwealth of Australia was raised to 'AAA' on Feb. 17, 2003. The upgrade reflects the government's success in increasing its flexibility, including its fiscal strength, to deal with any foreseeable shocks. The higher rating also reflects the reduced foreign currency risk from most balance of payment or external liquidity stresses from Australia's high external liabilities. The ratings on Australia are supported by the sovereign's: Substantial fiscal flexibility. Australia has one of the strongest fiscal positions globally, including 'AAA' rated sovereigns. This is underpinned by its very low and declining net public sector external and net general government debt burdens of about 3% of current account receipts and 3% of GDP, respectively. Commitment to fiscal
