From the SMH comes the following from Moody’s:
“We are very comfortable with Australia’s triple-A ratings because of the government’s very low debt levels compared with other sovereigns in the triple A category,” Steven Hess, a senior vice-president at Moody’s in New York, said.
…Mr Hess said risks stemming from a slowdown in China, falling commodity prices and uncertainty in Europe and the United States were manageable in the context of low government debt.
Recent falls in commodity prices will affect national income, terms of trade and potentially government finances, but will not lead to any real crisis.
“We don’t see any immediate threat to the ratings,” he said, adding he expected an improvement in federal finances.
That’s good news, though I’m wondering how “falls in commodity prices will affect national income, terms of trade and potentially government finances” lead to an “improvement in government finances?
