Moody's affirms Australia's Aaa rating; maintains stable outlook

Moody's Investors Service has today affirmed Australia's Aaa government issuer ratings, the Aaa senior unsecured rating and the (P)Aaa senior unsecured shelf rating. The stable outlook is maintained.

The factors supporting the rating affirmation are:

1. Moody's expectation that Australia's demonstrated economic resilience will endure in an uncertain global environment;

2. A very strong institutional framework;

3. Stronger fiscal metrics than many similarly rated peers - despite the increase in government debt from previous low levels - which we expect to remain consistent with a Aaa rating over the medium term.

Moody's notes that Australia's reliance on external financing, elevated household debt and rising residential property prices pose risks. The stable outlook on the rating reflects Moody's expectations that policy vigilance and response to these risks will be effective, and Australia's sovereign credit profile will remain resilient to these risks.

Australia's long-term local and foreign-currency bond and deposit ceilings remain at Aaa. The short-term foreign-currency bond and deposit ceilings remain at Prime.