S&P Global Ratings has upgraded its outlook on Australia’s AAA credit rating from negative to stable, praising the Morrison government’s “swift and decisive fiscal and health response” and “strong economic recovery”.
In its report, S&P stated that “the government’s policy response and strong economic rebound have reduced downside risks to our economic and fiscal outlook for Australia.
“As a result, we are revising the outlook to stable and affirming our ‘AAA/A-1+’ long- and short-term local and foreign currency ratings.”
In a strong sign that the Australian economy is recovering from the impact of the COVID-19 pandemic, local banks, including NAB and Westpac, also reported on Tuesday that their credit rating outlooks were also revised to stable.
S&P noted that Australia’s economic recovery has been “quicker and stronger” than previously expected and has outperformed every major advanced economy.
“The Morrison government has committed an unprecedented $291 billion or 14.7 per cent of GDP in direct economic support for individuals, households and businesses,” a statement issued by Treasurer Josh Frydenberg on Monday read.
“With the unemployment rate having fallen for six consecutive months and more people in work than before the pandemic, our economic plan is working.
“The next stage in our plan as outlined in the budget will secure Australia’s recovery from COVID-19.”
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