BRIEF-S&P says Australia ratings affirmed at AAA/A-1+; outlook remains negative

Published 17/05/2017, 01:28 pm
BRIEF-S&P says Australia ratings affirmed at AAA/A-1+; outlook remains negative

May 16 (Reuters) -

* S&P-Australia ratings affirmed at 'aaa/a-1+'; outlook remains negative

* S&P on Australia- potential for wage growth and inflation to remain low remains a downside risk to the government's current projections

* S&P - Negative outlook on Australia reflects view that if downside risks to government revenue materialize, then budget deficits could persist for several years

* S&P on Australia- Believe that balance of risks to government revenues remains negative

* S&P on Australia- Continue to think that budget surpluses could remain elusive beyond fiscal 2021

* S&P on Australia- Expect fiscal deficits to widen again in the next couple of years

* S&P - Believe Australia's high level of external indebtedness creates a high vulnerability to major shifts in foreign investors' willingness to provide capital

* S&P on Australia- Expect net general government debt to peak a little higher than expected, but to remain low at about 27% of GDP

* S&P on Australia- International investment position remains a major weakness in the sovereign credit profile

* S&P on Australia- Estimate headline GDP growth to be about 2.3% in 2017, and expect it to rise to around its potential growth rate in following years Source text :

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