On Nov. 30, 2005, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' ratings on the Commonwealth of Australia. The ratings on the sovereign are supported by its solid financial profile, strong institutions, and transparent policy environment. Ratings are also bolstered by the resilient and competitive economy, which is underpinned by past structural reforms. These strengths are partly offset by the high level of private-sector external indebtedness and a degree of economic concentration. Australia has one of the best fiscal positions globally. This is reflected in negative net debt combined for all levels of government—central, state, and local. Commitment to fiscal discipline is well entrenched at all levels of government and should deliver small general government surpluses over the medium term.
