Good News for Investment Property
Moody’s says Australia’s economic strength will continue to underpin the AAA rating, in spite of the deep economic shock caused by the coronavirus crisis.
Australia is one of only 10 countries to retain the triple-A status, which impacts on the cost of borrowing by state governments and banks, from three leading credit rating agencies.
Moody’s stable outlook reflects its forecast that downside risks to the credit profile are contained by the “underlying resilience of the economy” and Australia’s “effective policy-making institutions”.
Treasurer Josh Frydenberg said that the rating was reflective of the federal government’s economic response to the pandemic, with $260 billion—or 13.3 per cent of GDP—injecting the economy in response to Covid-19.