The unsolicited ratings on the Commonwealth of Australia reflect Standard&Poor's Ratings Services' view of the country's ample fiscal and monetary policy flexibility, economic resilience, public policy stability, and a financial sector that appears to be sound. We believe these factors demonstrate Australia's strong ability to absorb large economic and financial shocks, such as the global recession in 2009. These strengths are moderated by Australia's high external imbalances, dependence on commodity exports, and high household debt, all of which weigh on its growth prospects. The Australian economy performed relatively well in the fiscal year ended June 30, 2012, as mining exports and private investment in mining and liquefied natural gas offset weaknesses in domestic consumption and export sectors exposed
