mardi 14 avril 2015
Australia's AAA sovereign rating supported by low government debt and economic flexibility
Posted on 17:52 by nice news
Moody's Investors Service says that Australia's Aaa sovereign rating is supported by the economy's large size, its flexibility and relatively robust growth as well as government debt ratios that are lower than in many similarly rated peers.
However, Moody's notes that Australia faces challenges from the high weight of commodities in merchandise exports and recent investment growth, difficulties in returning to a budget surplus, a large net international liability position and a significant increase in household debt and property prices in recent years.
Moody's conclusions were contained in its just-released credit analysis "Australia", which looks at the country's credit profile in terms of its Economic Strength [assessed as "very high (+)"]; Institutional Strength ["very high (+)"]; Fiscal Strength ["very high (+)"]; and Susceptibility to Event Risk ["low (-)"].
These represent the four main analytic factors in Moody's Sovereign Bond Rating Methodology. The analysis constitutes an annual update to investors and is not a rating action.
The report points out that Australia's economy is growing at a faster pace than many similarly rated peers, despite lower prices for several of the country's commodity exports, and the tapering of the mining-related investment surge over the last few years.
While the modest slowdown Moody's expects in China's economy over the next two years could lower Australia's resource-related investment and mining exports, liquid natural gas (LNG) exports will grow and, together with consumption growth, will keep Australia's GDP growth above 2% on average in 2015 and 2016.
Nonetheless, lower corporate tax revenues from the resource sector exacerbate the difficulties in returning the government's budget to a surplus, from a deficit over the last few years. The
However, Moody's notes that Australia faces challenges from the high weight of commodities in merchandise exports and recent investment growth, difficulties in returning to a budget surplus, a large net international liability position and a significant increase in household debt and property prices in recent years.
Moody's conclusions were contained in its just-released credit analysis "Australia", which looks at the country's credit profile in terms of its Economic Strength [assessed as "very high (+)"]; Institutional Strength ["very high (+)"]; Fiscal Strength ["very high (+)"]; and Susceptibility to Event Risk ["low (-)"].
These represent the four main analytic factors in Moody's Sovereign Bond Rating Methodology. The analysis constitutes an annual update to investors and is not a rating action.
The report points out that Australia's economy is growing at a faster pace than many similarly rated peers, despite lower prices for several of the country's commodity exports, and the tapering of the mining-related investment surge over the last few years.
While the modest slowdown Moody's expects in China's economy over the next two years could lower Australia's resource-related investment and mining exports, liquid natural gas (LNG) exports will grow and, together with consumption growth, will keep Australia's GDP growth above 2% on average in 2015 and 2016.
Nonetheless, lower corporate tax revenues from the resource sector exacerbate the difficulties in returning the government's budget to a surplus, from a deficit over the last few years. The
Australia's AAA sovereign rating supported by low government debt and economic flexibility
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