Australia’s economy retains elite status

Australia remains one of only nine countries in the world to have a AAA credit rating with the three major rating agencies, after Fitch affirmed Australia’s AAA score.

“Australia’s rating is underpinned by the country’s high income per capita, as well as strong institutions and an effective policy framework, which facilitated nearly 30 consecutive years of economic growth prior to the Covid-19 pandemic and continues to support relatively resilient growth outcomes amid global shocks,” according to Fitch.

Fitch said most households would cope with rising interest rates, because borrowers get assessed at higher rates when applying for loans.

“Sizeable household assets (5.8x the value of debt), including a large build-up in liquid financial assets in the past few years, should cushion rising debt-servicing burdens and limit vulnerabilities,” it added.

The other two major rating agencies are Moody’s and Standard & Poor’s.