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BRIEF-Moody's says Australia's government debt to rise, but will stay moderate relative to other Aaa-rated sovereigns
August 23, 2017 / 5:32 AM / a month ago

BRIEF-Moody's says Australia's government debt to rise, but will stay moderate relative to other Aaa-rated sovereigns

Aug 23 (Reuters) - Moody’s -

* Australia’s government debt to rise, but will stay moderate relative to other Aaa-rated sovereigns

* Australia’s credit profile reflects its very high economic, institutional and fiscal strength, but the country faces latent event risks.

* Australia exposed to two main types of shocks; high and rising household debt and the economy’s long-standing dependence on external financing

* Australian government’s general debt burden will rise to 42% of GDP in fiscal 2018 (12 months ending 30 June 2018) from 36.1% in fiscal 2015

* Australia’s debt burden will remain moderate relative to other Aaa-rated sovereigns, and its debt affordability is very strong

* Australia’s high, rising household debt exposes it to potential downturn in housing market that could significantly weigh on GDP growth

* Australia's dependence on external financing exposes it to shift in foreign investors' assessment of attractiveness of Australian assets Source text - bit.ly/2iprSzV (Bengaluru Newsroom)

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