This report supplements our research update Ratings On Australia Affirmed At 'AAA/A-1+' On Monetary And Fiscal Flexibility; Outlook Remains Stable," published on July 29, 2014. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. The unsolicited ratings on the Commonwealth of Australia benefit from the country's strong public policy settings, economic resilience, and significant fiscal and monetary policy flexibility. We believe these factors provide Australia with a strong ability to absorb large economic and financial shocks, as was demonstrated during the global recession in 2009. Australia's high external imbalances, dependence on commodity
