Australia Could Lose AAA Rating

Australia could be stripped of its top credit score by S&P Global Ratings as early as next month if the government’s interim budget review shows further deterioration, according to BlackRock Inc, Bloomberg reported. The mid-year economic and fiscal outlook, which for the past three years has been delivered in December, could be a “catalyst” for the country to lose its AAA rating, said Stephen Miller, the Sydney-based head of Australian fixed income at the world’s largest money manager. Australia is currently the highest yielding issuer among 10 nations with top ratings from the three major assessors, and a downgrade could lessen the appeal of Aussie debt for international investors who hold the majority of the country’s sovereign notes.