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 suckers subscribers ... I know ... off to the naughty corner for me)

tee hee ...