On Sept. 17, 2007, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' foreign and local currency sovereign credit ratings on the Commonwealth of Australia (Australia). The outlook is stable. The ratings on Australia are underpinned by political stability, sound public finances, strong institutions, and a transparent policy environment. The ratings are also supported by Australia's resilient economy, which has benefited from past structural reforms that have boosted flexibility and productivity. These strengths are partly offset by the high level of private sector external indebtedness and moderate economic concentration in commodities. Australia has one of the best fiscal positions globally, distinguished by high funding of government pension liabilities and low gross debt estimated to be 4.4% of GDP at year-end 2007.
