On June 9, 2004, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' ratings on Australia. The ratings on the sovereign are supported by its substantial fiscal flexibility, strong institutions and transparent policy environment, and resilient and competitive economy that is underpinned by past structural reforms. These strengths are partly offset by a high level of private-sector external indebtedness and a degree of economic concentration. Fiscal flexibility is strong because Australia has one of the best fiscal positions globally. This is supported by net general government debt near to zero. Commitment to fiscal discipline is well entrenched at all levels of government and should deliver small general government surpluses over the medium term. Australia's developed, competitive economy is bolstered by the
