Stimulus Measures: Credit Rating and Ratings Agencies

stimulus measures: All the worry is about what might happen in the future – will we have room for stimulus measures should the economy slow, and rather more abstractly, will our debt level cause the ratings agencies to lower our triple-A credit rating At the moment, Australia is one of only 10 nations to have a triple A rating from the three agencies of Standard & Poor's, Fitch and Moody's, according to The Guardian. Scorn for Morrison numbers triggers Standard and Poor negative outlook Read more This week came reports that S&P, which in July put Australia on a negative credit outlook, might use the updated budget figures in December mid-year economic and fiscal outlook as a trigger for the downgrade. When you look at talk about government debt, it soon obvious that no one actually argues it is inhibiting economic growth. While there is a good chance that government revenue will be improved by the recent increases in coal and iron ore prices, Treasury officials told the Senate estimates hearing this week there was a lot of uncertainty about how long those higher prices would remain in place. Yet really we should ask why on Earth does such an agency have so much importance S&P for example is the only one of the three major credit agencies to not have the US rated triple A. It is frankly absurd to think that the US would be in any way unable to repay its debt given its status as the world largest economy with a currency that is far and away the most traded in the world. As such, the number in the Myefo might not show much of a lowering of the deficit, and thus S&P might decide the path back to surplus is too slow or unrealistic and take away our triple-A rating. (news.financializer.com). As reported in the news.