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S&P keeps negative outlook on Australia's AAA rating

Published 08/05/2018, 08:08 pm
Updated 08/05/2018, 08:10 pm
© Reuters.  S&P keeps negative outlook on Australia's AAA rating

SYDNEY, May 8 (Reuters) - S&P Global Ratings said an improvement in Australia's budget position had lessened pressure on its triple-A rating, but there were enough risks to keep the outlook negative "for now".

Reacting to the Liberal-National government's 2018/19 budget, S&P said it had shown a commitment to fiscal prudence with a plan to return a balanced budget earlier than previously announced.

However, there were risks to the fiscal outlook, including global trade tensions and strains in emerging markets.

"As such, risks to the government's plan for an earlier return to budget surpluses are significant," the agency said in a statement.

"The outlook on the long-term Australian sovereign ratings remains negative for now to reflect these uncertainties."

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