17.05.201702:41:00UTC+00S&P Upholds Australia’s Credit Rating But Retains Negative Outlook

Australia's highly-valued AAA rating was affirmed by S&P Global ratings, citing the country's low public debt and healthy economy. However, concerns regarding the country's ability to return to a budget surplus caused it to maintain a negative outlook on the nation's sovereign score.

In the previous week, the government has promised to report a small surplus by 2020-2021, putting a conclusion to over a decade of deficits that has hurt its prized credit rating. The economic blueprint presented by the Australian government was warmly accepted by both Moody's and Fitch, who believes budget had not major effect on ratings.

Despite securing its spot as one of the 10 countries in the world with triple-A rating from the top three rating agencies, S&P still had a dim outlook for its economy.

S&P said that the significant delay in the fiscal repair and the threat of more delay has increased the agency's skepticism over the government's ability to attain its fiscal goals. It also believed that wage and inflation growth continues to be low, posing a downside risk to the presented projections.

It also cited the rising fiscal risks in the hot housing market, stating that its AAA rating will only be on a stable footing once a significant moderation in housing and credit is achieved.