Moody’s says Australia’s triple-A rating safe for now

australiaSYDNEY: Moody’s Investors Service on Monday said short-lived political uncertainty in Australia would have limited implications for the country’s coveted triple-A credit rating.

The ratings agency issued the statement after a general election on Saturday produced no clear winner even after more than half the votes had been counted.

An outcome is not expected for several days, raising the prospect of prolonged political and economic instability.

Moody’s said it expected fiscal consolidation to remain a key policy objective of the new government, when it is formed.

“Looking ahead, trends in Australia’s credit profile will be determined by whether fiscal objectives are effectively implemented, whether external financing conditions remain favorable and how housing market developments affect domestic growth and financial conditions,” said Marie Diron, Senior Vice President at Moody’s.