S&P Global Ratings is out with its latest review report on the Australian economy, hinting that there is1 in 3 chance of Australian AAA rating downgrade.
Key findings
“Spending to combat the virus economic impact.
Downgrading the outlook on the credit rating was not a reflection on the spending but that the government had greater debt.
Australia is not losing fiscal discipline, they are responding to an external shock that has hit the economy.
Not S&P’s base case to lower the rating.
Expect Australia’s fiscal position to weaken for the next two years but anticipated a rebound in 2022.”
Last Wednesday, S&P downgraded Australia’s outlook to negative, citing large increases in deficits in the next two years.
- AUD/USD extends run-up beyond 0.6400 following China data
Share
