Australia has high fiscal flexibility, supported by a soundly performing economy and financial system. The country's high reliance on external savings and commodity income to fund growth are key vulnerabilities. We have affirmed the ratings on Australia at 'AAA/A-1+', and the outlook remains stable. On Sept. 23, 2011, Standard&Poor's Ratings Services affirmed its unsolicited 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the Commonwealth of Australia. The outlook remains stable. The unsolicited ratings on Australia reflect Standard&Poor's view of the country's ample fiscal and monetary policy flexibility, economic resilience, public policy stability, and its sound financial sector. We believe these factors demonstrate Australia's strong ability to absorb large economic and financial shocks, such as the
