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Australia's AAA credit rating reaffirmed

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The Government welcomes the news that Fitch has once again confirmed Australia’s AAA credit rating.

Australia now sits with just six other countries in the world with the top credit ratings with a stable outlook from all three of the world’s major credit ratings agencies.

This coveted trifecta is another ringing endorsement of our nation’s economy, which continues to kick goals against the backdrop of ongoing global headwinds.

Coming just days after our mid-year Budget update, Fitch’s confirmation of our AAA status is yet another validation of the government’s fiscal settings which sit amongst the most impressive in the world.

Alongside news from IMF earlier this month that we’ve leapfrogged to the 12th biggest economy in the world - despite having the 51st biggest population - it reinforces that Australia’s economy remains the standout among advanced economies.

Our rock solid economic fundamentals have proved resilient against challenging global headwinds, and while we are not immune from what happens overseas, we have every reason to be confident about our economy’s prospects well into the future.

To put this into perspective, our economy is now 11 per cent larger than when we came to office despite the worst global economic conditions since the Great Depression.

We have an enviable combination of solid growth, low unemployment, contained inflation plus our budget is returning to surplus faster than any major advanced economy.

The Government’s strict fiscal policy has given the RBA maximum flexibility to cut interest rates, as it has done repeatedly in recent times, meaning a household with a $300,000 mortgage is now paying $4500 less a year than under the previous Government.

Australia joined the ranks of countries with top credit ratings with each of the major agencies for the first time in November last year when Fitch issued our economy a AAA upgrade.

27 October 2012