23 Dec 2011

AAA rating for Australia

9:43 am on 23 December 2011

Moody's credit rating agency has reaffirmed Australia's AAA sovereign debt rating.

Moody's says the rating is based on very high economic resiliency, very high government financial strength and low susceptibility to risk.

It says the federal government has very low gross debt that is easily affordable, compared to most other nations with that rating.

"As one of the world's most advanced economies, the country has not only a significant natural resource sector - including minerals, hydrocarbons, and agriculture - but also well developed manufacturing and service sectors," the report said.

However, it notes that Australia will have to implement policies to deal with its ageing population.

Last month, Fitch Ratings upgraded its assessment of Australia's sovereign debt to AAA.

The ABC reports it is the first time Australia has attained the top rating from all three international agencies.