MELBOURNE -- Standard&Poor's CreditWire 5/14/98 -- Standard&Poor's today affirmed the Commonwealth of Australia's long-term double-'A' foreign currency and triple-'A' local currency credit ratings, along with its 'A-1'-plus short-term rating. The outlook on the foreign currency rating remains positive, while the outlook on the local currency rating is stable. The Commonwealth's ratings still balance a diverse and increasingly export oriented economy with high but declining net public external debt estimated at about 65% of exports this financial year (ending June 30). As expected, the federal budget for 1998-99 has affirmed the Howard government's fiscal consolidation strategy, with a return to an underlying budget surplus for the first time since 1989-90. A government expectation and commitment for Commonwealth
