S&P cites concerns that the ruling coalition government will be hampered in its plans to return to budget surplus
Australian Treasurer Scott Morrison said on Thursday the country needs to stick to its fiscal reform plan after Standard & Poor’s downgraded the outlook on its coveted triple-A credit rating to negative from stable.
S&P cited concerns that the ruling coalition government will be hampered in its plans to return to budget surplus as it struggles to get the numbers to form a narrow majority government after a cliffhanger election left the country in limbo, and Prime Minister Malcolm Turnbull’s leadership in doubt.
“I have no intention of postponing the pace of fiscal consolidation and so therefore I remain very determined to ensure that the warnings that are in this report are not realised,” Morrison told reporters.
“I think what the Australian people want to be assured of today is that there is a clear plan, should we be able to form Government, to maintain the fiscal health of this country and that is what the agencies are saying is necessary.”