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Fitch reconsiders Aust credit rating

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By Vishal Teckchandani
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1 minute read

Fitch Ratings is considering a change to Australia's sovereign credit rating after the global financial crisis highlighted the risks of the banking sector's strong reliance on foreign capital.

Fitch currently has a AA+ rating for Australia's long-term foreign currency issuer default rating, which measures Australia's creditworthiness in the international markets.

"We have to think about what to do with the rating now that we think we are on the other end of this crisis, and whether a AA+ rating is still appropriate going forward," Fitch head of Asia-Pacific sovereign ratings James McCormack said.

"The focus of our ongoing assessment of Australia's sovereign ratings takes into account the risks associated with the banks' heavy reliance on external funding, which Fitch has long believed represented a contingent sovereign liability."