Jul 30, 2014

Standard and Poor’s invents a poor debt standard. Let’s call their bluff!

Standard & Poor's arbitrary warning about debt provides a great opportunity for Australia if we want to do something about the stubbornly high dollar, write Glenn Dyer and Bernard Keane.

To the amazement of many of the country’s economic policymakers, ratings agency Standard & Poor’s have imposed a qualified AAA stable credit rating on Australia.

Yes, S&P reaffirmed Australia’s AAA stable rating yesterday, but in discussing possible reasons for a ratings down grade in the future, said “we could also lower the ratings if significantly weaker than expected budget performance leads to net general government debt rising above 30% of GDP.”

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7 thoughts on “Standard and Poor’s invents a poor debt standard. Let’s call their bluff!

  1. Chris Hartwell

    Method behind the madness of this parliament? Surely not. Dumb luck and golden opportunities blithely squandered more like.

  2. Arty Boxer

    So why is Standard and Poor’s making such a silly call? Doing a favour for a client?

  3. Yclept

    This from the people who brought us the GFC!

  4. old greybeard

    Well this is one the outfits that rated the junk loans as high grade just pre GFC. Why does anyone believe anything they say?

  5. klewso

    “Good Reviews For Sale” – to get more business?

  6. AR

    Their dependability Standards are extremely Poor.

  7. klewso

    There is no Standard, that’s why it’s so Poor.

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