Australian Politics Forum - AAA credit rating could go.

Bobby.

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AAA credit rating could go.
Feb 27^th, 2013 at 6:30pm

http://www.businessspectator.com.au/bs.nsf/Article/Australia-could-follow-Spains...

Quote:

Australia risks losing its AAA credit rating if it is unable to get its federal budget back to surplus by 2014, according to the global director of public finance at Standard & Poor's Financial Services.

The official, Kyran Curry, has been a long-time primary credit analyst for Australia and told The Australian Financial Review that there are similarities between Australia's relatively indebted banking system and Spain's position before it began its rapid descent into its debt crisis.

It's all JuLiars fault.

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Sir lastnail Gold Member Offline Australian Politics Posts: 30088 Gender:	Re: AAA credit rating could go. Reply #1 - Feb 27^th, 2013 at 7:06pm I'm surprised it hasn't hit junk bond status with 1.3 trillion borrowed to fuel a property bubble
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Bobby. Gold Member Offline Australian Politics Posts: 104680 Melbourne Gender:	Re: AAA credit rating could go. Reply #2 - Feb 27^th, 2013 at 7:30pm Yes Nail, maybe it's because we're the best of a bad lot? Mind you - we're heading down the plug hole fast.
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perceptions_now

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Re: AAA credit rating could go.
Reply #3 - Feb 27^th, 2013 at 7:49pm

Bobby. wrote on Feb 27^th, 2013 at 6:30pm:

http://www.businessspectator.com.au/bs.nsf/Article/Australia-could-follow-Spains...

Quote:

Australia risks losing its AAA credit rating if it is unable to get its federal budget back to surplus by 2014, according to the global director of public finance at Standard & Poor's Financial Services.

The official, Kyran Curry, has been a long-time primary credit analyst for Australia and told The Australian Financial Review that there are similarities between Australia's relatively indebted banking system and Spain's position before it began its rapid descent into its debt crisis.

It's all JuLiars fault.

What a load of old coblers!!!

If OZ were to be downgraded now, then we would go onto the same rating as the USA & UK, who were downgraded in 2011 & 2013, respectively.

The US already exceeds a 100% Debt to GDP ratio & the UK is breathing down the neck of 100%, whilst Australian is put at 30% according to 23%, according to the IMF in the following website.
http://en.wikipedia.org/wiki/List_of_countries_by_public_debt

Clearly both the US & UK and many other countries, are in a lot worse Economic situation, than Australia!

As for comparing the OZ banking system, to that of Spain, that is like comparing chalk & cheese.

Of course, OZ banks are likely to come under more stress, as problems in the housing sector become more pronounced, but that isn't going to affect them just yet and for now they are very solid!

Oh & btw, for those who think that low or no Debt is the bees knees, it would be a wake up to look at those countries who actually have a low national Debt.

On most occasions, you would probably change you mind about low Debt being great, because you probably would want to live in most low Debt countries OR very high Debt countries, for that matter!

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Bobby. Gold Member Offline Australian Politics Posts: 104680 Melbourne Gender:	Re: AAA credit rating could go. Reply #4 - Feb 27^th, 2013 at 8:07pm Perceptions, read it properly: Quote: there are similarities between Australia's relatively indebted banking system and Spain's position before it began its rapid descent into its debt crisis.
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... Gold Member Offline Posts: 23673 WA Gender:	Re: AAA credit rating could go. Reply #5 - Feb 27^th, 2013 at 10:15pm Meh. AA is still pretty good.
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newtown_grafitti Full Member Offline Australian Politics Posts: 106 Gender:	Re: AAA credit rating could go. Reply #6 - Feb 27^th, 2013 at 11:45pm Meh indeed. The AFR report of Curry's opinion appeared November 21. Nothing has happened since then to lend weight to his claim.
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Sir Spot of Borg Gold Member Offline WE ARE BORG Posts: 26508 Australia	Re: AAA credit rating could go. Reply #7 - Feb 28^th, 2013 at 4:57am Seriously? You have to have a surplus to keep a rating? What if credit cards worked that way? You couldn't ever spend any money or they would take your card. We have been without a surplus before - did we lose "rating"? SOB
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Kat

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Re: AAA credit rating could go.
Reply #8 - Feb 28^th, 2013 at 8:38am

Sir Spot of Borg wrote on Feb 28^th, 2013 at 4:57am:

Seriously? You have to have a surplus to keep a rating? What if credit cards worked that way? You couldn't ever spend any money or they would take your card. We have been without a surplus before - did we lose "rating"?

SOB

I seem to recall we did get knocked down to AA sometime in the '80s.

But, you are correct, a manageable debt (which ours is, despite claims
from the right) really is nothing to lose sleep over.

<sarc> Unless the government happens to be Labor, of course. </sarc>

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longweekend58

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Re: AAA credit rating could go.
Reply #9 - Feb 28^th, 2013 at 8:54am

standard and poors are a company I hope goes broke. UK was just downgraded from AAA after a decade of economic misery and its third recession in 5 years. Australia however by comparision has low debt, low deficit and good economic growth and low unemployment. Since when was a surplus a necessity to a AA rating since almost no govt anywhere ever acheives it and never on a regular basis?

rating agencies are half the trouble.

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Sir lastnail

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Re: AAA credit rating could go.
Reply #10 - Feb 28^th, 2013 at 9:14am

longweekend58 wrote on Feb 28^th, 2013 at 8:54am:

standard and poors are a company I hope goes broke. UK was just downgraded from AAA after a decade of economic misery and its third recession in 5 years. Australia however by comparision has low debt, low deficit and good economic growth and low unemployment. Since when was a surplus a necessity to a AA rating since almost no govt anywhere ever acheives it and never on a regular basis?

rating agencies are half the trouble.

has low debt Grin

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perceptions_now

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Re: AAA credit rating could go.
Reply #11 - Feb 28^th, 2013 at 1:00pm

longweekend58 wrote on Feb 28^th, 2013 at 8:54am:

standard and poors are a company I hope goes broke. UK was just downgraded from AAA after a decade of economic misery and its third recession in 5 years. Australia however by comparision has low debt, low deficit and good economic growth and low unemployment. Since when was a surplus a necessity to a AA rating since almost no govt anywhere ever acheives it and never on a regular basis?

rating agencies are half the trouble.

Agreed!

In fact, I would suggest that the ratings agencies are more about being part of the problem, rather than being part of the solution!

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hadrian_now Gold Member Offline Australian Politics Posts: 1041 Gender:	Re: AAA credit rating could go. Reply #12 - Feb 28^th, 2013 at 1:38pm I would be even more surprised at Australia's AAA rating being downgraded than I would be at Julia Gillard winning the next election . . .and I see no contradiction here.
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longweekend58

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Re: AAA credit rating could go.
Reply #13 - Feb 28^th, 2013 at 6:02pm

Sir lastnail wrote on Feb 28^th, 2013 at 9:14am:

longweekend58 wrote on Feb 28^th, 2013 at 8:54am:

standard and poors are a company I hope goes broke. UK was just downgraded from AAA after a decade of economic misery and its third recession in 5 years. Australia however by comparision has low debt, low deficit and good economic growth and low unemployment. Since when was a surplus a necessity to a AA rating since almost no govt anywhere ever acheives it and never on a regular basis?

rating agencies are half the trouble.

has low debt Grin

http://www.ozpolitic.com/album/forum-attachments/debtclock_001.gif

not the qualifying term BY COMPARISON. it does change things.

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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."

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Bobby.

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Re: AAA credit rating could go.
Reply #14 - Feb 28^th, 2013 at 6:17pm

longweekend58 wrote on Feb 28^th, 2013 at 6:02pm:

Sir lastnail wrote on Feb 28^th, 2013 at 9:14am:

longweekend58 wrote on Feb 28^th, 2013 at 8:54am:

standard and poors are a company I hope goes broke. UK was just downgraded from AAA after a decade of economic misery and its third recession in 5 years. Australia however by comparision has low debt, low deficit and good economic growth and low unemployment. Since when was a surplus a necessity to a AA rating since almost no govt anywhere ever acheives it and never on a regular basis?

rating agencies are half the trouble.

has low debt Grin

http://www.ozpolitic.com/album/forum-attachments/debtclock_001.gif

not the qualifying term BY COMPARISON. it does change things.

Longweekend,
you said

low debt

you're wrong - admit it.

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