The sovereign credit ratings on Australia benefit from the country's strong institutional settings, its wealthy and resilient economy, monetary policy flexibility, and low government debt. The country's high external indebtedness and vulnerability to weak commodity export demand moderate these strengths. We are affirming our 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on Australia. The rating outlook remains negative, reflecting risks to the government's fiscal consolidation plan and risks to the economic, fiscal, and financial stability outlook should the rapid growth of credit and house prices continue. On May 17, 2017, S&P Global Ratings affirmed its 'AAA' long-term and 'A-1+' short-term unsolicited sovereign credit ratings on the Commonwealth of Australia. The outlook remains negative. The negative outlook on Australia reflects
