The Australian Financial Review reports today on S&P on Australia
- S&P it will look past the rally in commodity prices when it evaluates Australia's fiscal health
- S&P not convinced that commodity prices will stay around current levels, as it is largely driven by higher demand stemming from policy in China
- Concerned on the government pushing out the timing on its goal to achieve a surplus further
- "In terms of the government's medium-term fiscal outlook, we are not quite sure that the recent rebound in prices are likely to be of a very big help in helping the government to reach a balanced budget that it promises by 2021
- Now this 2021 target has actually been pushed back quite a few times over the course of the past few years"
The full piece is here at the AFR, may be gated. There is an ungated copy of the article here.
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The ratings agency has Australia 'on watch' (have had so since July)
