S&P Global Ratings revised the outlook on Australia's rating outlook to negative from stable as coronavirus, or COVID-19, outbreak weakened its fiscal outlook.
The rating agency said the negative outlook reflects a substantial deterioration of Australia's fiscal headroom at the 'AAA' rating level.
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 at the 'AAA' rating level.
Nonetheless, the ratings were affirmed at 'AAA'. S&P observed that the triple A rating on Australia benefit from the country's strong institutional settings, its wealthy economy, and monetary policy flexibility.