We are affirming the 'AAA/A-1+' ratings on the Commonwealth of Australia. The outlook on the ratings is stable. Australia has ample fiscal flexibility, underpinned by low public debt and strong fiscal discipline, and is characterized by political stability, strong institutions, and transparency in economic decision-making. These strengths are moderated by high external imbalances, dependence on commodity exports, and the risk of a housing market correction. On Sept. 6, 2010, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' foreign and local currency sovereign credit ratings on the Commonwealth of Australia. The outlook is stable. The sovereign ratings on the Commonwealth of Australia reflect its ample fiscal and monetary policy flexibility, economic resilience, public policy stability, and its sound financial sector. These
