Saturday, 6 August 2011

Australia's Treasurer Swan remains upbeat

Australia's AAA rating safe: Swan

Treasurer Wayne Swan says Australia's gold-plated AAA credit rating is safe and secure and the nation's fiscal situation couldn't be more different to the United States.

His comments come after Standard & Poor's today downgraded its credit rating for the US from AAA to AA+, the first time in history the US rating has been downgraded.

Mr Swan said Australia had known for some time the US faced a long and painful adjustment to get its budget back on a sustainable medium-term footing.

"But they've taken an important first step towards this objective," he said.

"S&P's announcement comes amid heightened volatility over the past week in international financial markets driven by continuing concerns about the weakness of the US economic recovery and sovereign debt levels in Europe."

Mr Swan said Australia was not immune from events in the rest of the world but the Australian economy's fundamentals remained strong.

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