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18 Mar 2015
Fitch maintains Australia’s AAA/Stable rating
FXStreet (Mumbai) - The rating agency Fitch maintained its AAA rating for Australia with stable outlook, which indicates the agency does not anticipate events in the near-term that could lead to a ratings change.
Senior unsecured foreign and local currency bond ratings were also affirmed at AAA. The rating agency said future developments that could individually, or collectively, result in a downgrade of the ratings includes–
1. A weak or non-existent recovery in the non-mining sector leading to lower potential growth and employment as the benefits from the mining boom fade, and pressure on public finances.
2. A negative external shock, such as a continued rapid decline in the terms of trade following a severe slowdown in China, could lead to a sharp increase in the current account deficit and/or a sustained reallocation of foreign capital.
3. A sharp economic downturn, which could also be triggered by external events, could lead to widespread household defaults, banking system distress and a negative impact on public finances.
Senior unsecured foreign and local currency bond ratings were also affirmed at AAA. The rating agency said future developments that could individually, or collectively, result in a downgrade of the ratings includes–
1. A weak or non-existent recovery in the non-mining sector leading to lower potential growth and employment as the benefits from the mining boom fade, and pressure on public finances.
2. A negative external shock, such as a continued rapid decline in the terms of trade following a severe slowdown in China, could lead to a sharp increase in the current account deficit and/or a sustained reallocation of foreign capital.
3. A sharp economic downturn, which could also be triggered by external events, could lead to widespread household defaults, banking system distress and a negative impact on public finances.