SYDNEY, May 9 (Reuters) - Australia’s fiscal position is a key support to the government’s triple A rating and stable outlook, said Moody’s on Tuesday following the release of the federal budget.
“Our assessment of fiscal strength is based on overall government debt, which we expect to rise gradually from around 37.5 percent of GDP,” said Marie Diron, an associate managing director, at Moody’s Investors Service, seeing the debt burden in line with other Aaa-rated countries.
Diron said the government’s projections denoted ongoing commitment to budget repair, though the ratings agency sees a slight downside risk to the government’s growth forecast.
“We assume that GDP growth will be more 2.5 to 2.75 percent whereas the government sees a bounce to 3 percent,” said Diron. (Reporting by Cecile Lefort; Editing by Simon Cameron-Moore)