It's a couple of weeks or so into the new year so I thought I'd do an update on where we are at with the AAA rating in Australia
Plus, I had a question on it in the comments today.
We got the Australian government's Mid-year Economic and Fiscal Outlook (MYEFO) update back in December:
- Australian budget update assumes lower prices for iron ore, coal
- Australia MYEFO - Govmt sees 2016/17 deficit at A$36.5bn
Straight after that is when we got confirmation from the big 3 ratings agencies that the AAA is safe (for now!):
- Moody's says Australia's budget update in line with AAA ratings, stable outlook
- S&P: Australia budget update has no immediate rating impact
- Fitch: Australia budget outlook consistent with AAA ratings despite slight deterioration
Rating's agencies , love 'em or loath 'em (or be indifferent to them like me), that's what they are saying. If you'd like to comment "Weren't these the guys that ... <insert whatever>" please go ahead though.
Last I week I posted an update also: Amidst all the hand-wringing over a potential sovereign downgrade, demand for Australian bank bonds continues apace.
I noted there that the AAA was reaffirmed in December after the MYEFO, so I'm repeating myself in this post somewhat.
I also said:
- The hand-wringing over the AAA never entirely goes away, it should next start to build into the May budget (or whenever those crappy doom and gloom newsletters need more
suckerssubscribers ... I know ... off to the naughty corner for me)
tee hee ...