Ratings agency
Standard & Poor's has reaffirmed Australia's triple-A credit rating just months away from the federal election
.Standard & Poor's issued the rating despite a recent fall in the country's terms of trade and a steep decline in the dollar in recent months.
The dollar brushed 90 US cents in recent weeks after spending the last couple of years hugging parity with the US dollar.
The stable rating has been maintained even after some deterioration in the country's public finances since the financial crisis.
The main reasons for Standard & Poor's vote of confidence include
Australia's public policy stability, economic resilience, and flexible fiscal and monetary policy.
A credit analyst from Standard & Poor's, Craig Michaels, said
Australia had a “strong ability” to absorb large economic and financial shocks, “as was demonstrated during the global recession in 2009.”
"[However], moderating these strengths are Australia's high external imbalances, dependence on commodity exports, and high household debt."
The agency notes Australia's public finances have “worsened” in the last few years, but
the deterioration has been “more contained” than for many triple-A rated peers.http://www.smh.com.au/business/sp-affirms-australias-aaa-credit-rating-20130718-... It also says it expects the general government sector's budget balance to post “relatively small and declining deficits as a share of GDP”.