Australian Treasurer Jim Chalmers has said that the renewal of Australia’s AAA credit rating by rating agency Standard and Poor’s (S&P) proves the effectiveness of the Albanese government’s “responsible economic management” in the previous year.
On Jan. 30, S&P Global announced that Australia had retained its AAA credit rating while expecting the country to avoid a recession despite the worrying global economic trend.
The AAA rating is the highest credit level assigned by many rating agencies, implying that the subject has an extremely strong capacity to meet its financial commitment.
Generally speaking, a high credit rating level can help a country attract investors interested in purchasing its debt (government bonds) and some other forms of funding (such as foreign direct investment)….