S&P Global Ratings downgraded the outlook on Australia's sovereign ratings to negative from stable as the outbreak of coronavirus, or COVID-19, weakens public finances.
The downgrade reflects a 'substantial deterioration' of its fiscal headroom at the 'AAA' rating level, the agency said in a statement on Wednesday.
The outbreak of coronavirus has posed a severe economic and fiscal shock. The Australian economy is set to plunge into recession for the first time in almost 30 years, causing a substantial deterioration of the government's fiscal headroom, S&P noted.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.