The Turnbull Government welcomed the announcement today that Moody’s has maintained Australia’s AAA credit rating, with a stable outlook.
The Government’s record of strong economic management has ensured Australia’s AAA credit rating has been maintained with all three major ratings agencies.
Factors cited by Moody’s to support their announcement included Australia’s:
- Very high economic strength
- robust growth potential
- diversity and flexibility and;
- strong regulatory framework.
Moody’s acknowledged that the Budget continued its commitment to fiscal consolidation, evident by the maintained objective of the Government of returning the Budget to balance.
Importantly, Moody’s also acknowledged APRA's “proactive prudential policies”, fully supported by the Government, which are working to “bolster the resilience of the banking sector” and mitigate the risks of high household debt.
They also note that Australia's banking system is one of the most resilient among rated sovereigns.
Moody’s also expect Australia's solid economic growth to continue for the foreseeable future.
Moody’s also notes:
“Australia’s very high [fiscal strength] score is driven by a moderate government debt burden relative to AAA-rated peers and low cost of debt.”
Risks to our rating cited by Moody's include potential opposition to the Government’s plans to balance the Budget.
This is a further reminder for the Parliament, particularly the Labor opposition, to continue to back our plans to drive economic growth, avoid higher debt and reduce the deficit.
The Turnbull Government will continue to implement our positive economic agenda focused on growing the economy, creating more and better paid jobs for Australians and bringing the Budget back into balance.