Uncertainty surrounding the outcome of the weekend's federal election will have “limited credit implications” for Australia’s sovereign credit profile, according to Moody’s Investors Service.
Marie Diron, vice president at Moody’s, said the result of the federal election will only affect Australia’s sovereign credit profile if it changes broad policy priorities and the effectiveness of their implementation.
The outcome of Saturday’s poll still hangs in the balance, with neither major party in a position to form a majority government.
Counting resumed yesterday.
“Trends in Australia’s credit profile will be determined by whether fiscal objectives are effectively implemented, whether external financing conditions remain favourable and how housing market developments affect domestic growth and financial conditions,” Ms Diron said.
She added that a weaker Australian dollar on service exports will support GDP growth, and suggested that economic momentum is likely to remain robust.
[Related: Australia to ‘definitely’ lose AAA rating]