Australia's AAA credit rating is safe, for now

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Australia’s AAA sovereign credit rating is not at risk, for now, with Standard and Poor’s and Moody’s taking no ratings actions following the release of the federal budget.

“Our current rating on Australia is ‘AAA/Stable’,” said S&P.

“We will look through the details of the budget over the coming weeks. As we’ve previously highlighted, improving budget balances remain important to the rating to offset Australia’s high vulnerability to shifts in offshore financial market sentiment.”

Moody’s released a similar statement, noting that Australia starts from a position of fiscal strength but faces downside risks. It too noted that it would be reviewing the budget details.

The group has Australia’s rating at AAA, the highest on offer, with a stable outlook.

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