The ratings on Australia are supported by the country's solid financial profile, strong institutions, and transparent policy environment. The ratings are also bolstered by Australia's resilient and competitive economy, which is underpinned by past structural reforms. These strengths are partly offset by the high level of private-sector external indebtedness and a degree of economic concentration. Australia has one of the best fiscal positions globally. This is reflected in the net creditor position of the Australian federal government. In spite of some likely spending pressures in the lead up to the forthcoming federal election, a commitment to fiscal discipline is well entrenched at the Commonwealth and other levels of government. This should continue to deliver small general government surpluses over the
