The world’s biggest rating agency has warned Australia’s prized AAA credit rating is at risk if the economy fails to snap back from the recession quickly.
Standard and Poor’s has placed Australia on a "negative outlook” due to the economic shock dealt by COVID-19 and the level of debt caused by the unprecedented amount of government stimulus spending.
The COVID-19 outbreak has dealt Australia a severe economic and fiscal shock. We expect the Australian economy to plunge into recession for the first time in almost 30 years, causing a substantial deterioration of the government’s fiscal headroom at the ‘AAA’ rating level,” the agency said. Australia has held a AAA, the higest rating, since 2003.
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