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Moody's says Australia's budget update in line with Aaa ratings
[SYDNEY] Moody's rating agency endorsed Australia's budget update on Monday, saying it was in line with its triple-A ratings and stable outlook, although the government had forecast a A$10 billion (S$10.5 billion) deterioration in its cash deficit.
"With fiscal metrics broadly in line with other Aaa-rated sovereigns, Australia's Aaa rating and stable outlook are underpinned by very high shock absorption capacity of the economy and very strong policymaking institutions," said Marie Diron, associate managing director at Moody's.
Moody's said though it expects the budget deficits to be wider for longer with gross general government debt to rise to 42 per cent of GDP from the current 36 per cent, Australia's standing was consistent with the median level of Aaa-rated sovereigns.