ICYMI: S&P ratings give a 1 in 3 chance of Australian AAA rating downgrade

Standard & Poor's says Australia's government has a one in three chance of losing its AAA credit rating

• S&P cite spending to combat the virus economic impact

Last Wednesday S&P downgraded Australia's outlook

• citing large increases in deficits in the next two years

Further comments from the agency

• downgrading the outlook on the credit rating was not a reflection on the spending but that the government had greater debt
• "They are not losing fiscal discipline, they are responding to an external shock that has hit the economy'
• not S&P's base case to lower the rating
• expect Australia's fiscal position to weaken for the next two years but anticipated a rebound in 2022