Great news for Australia as it retains its AAA sovereign credit rating alongside just nine other countries through the COVID-19 pandemic induced global recession.
Australia’s recent AAA stable credit rating reflected the economy’s strengths, good leadership and health management, despite Moody’s Investors Service predictions of the economy shrinking by 5 per cent this year. The government’s $150 billion in budget spending and support from the Reserve Bank of Australia would alleviate the severe contraction.
“In Moody’s assessment, the resilience of the Australian economy supports a return to positive growth next year, without any significant long-lasting impact on growth potential once the crisis passes.” Said the Reserve Bank of Australia.
This is a brief summary of the article ‘Moody’s sticks to AAA rating’ by John Kehoe and Phillip Coorey | AFR – The Australian Financial Review | Wednesday 24th June 2020.