Australias AAA Rating is Safe

From AFR 

The world’s biggest credit rating agency gave a vote of confidence to Australia’s ‘‘strong’’ economic rebound and suppression of the COVID-19 virus. 

The endorsement removes the threat of a downgrade since S&P put Australia on a ‘‘negative’’ outlook at the peak of pandemic panic in April last year and which could have increased the cost of borrowing for the $1.6 trillion in federal government debt projected over the next decade. 

S&P forecasts the federal budget deficit to shrink faster than the government’s projections because the rating agency assumes the iron ore price will be higher than the government’s conservative assumption of $US55 a tonne.