S&P revises Australia outlook to stable; affirms 'AAA' ratings

Dhwani Mehta FXStreet

In its latest sovereign credit review, S&P Global ratings revised the outlook for Australia to ‘stable’ while affirming ‘AAA’ ratings.

Additional takeaways

“Australia outlook revised to stable on swift economic recovery; AAA/A-1+' ratings affirmed.”

“Australia's response to contain the pandemic, limit long-term economic scarring has seen economy recover quicker, stronger than previously expected.”

“More confident general govt's fiscal deficits to narrow toward 3% of GDP during next 2-3 years after 10% deficit in fiscal 2021.”

“Govt's policy response and strong economic rebound have reduced downside risks to our economic and fiscal outlook for Australia. “

“Stable outlook reflects our expectations that the general government fiscal deficits will narrow in line with our forecasts.”

Market reaction

Amid a fresh recovery attempt seen in the US dollar, AUD/USD shrugs off the upbeat S&P report and tests daily lows near 0.7730, down 0.06% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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