Australia's Debt Dilemma Raises Downgrade Fears
- Moody's has warned debt will grow without revenue measures
- Number of headline metrics `very similar' to 1986: JPMorgan
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1986 may seem like a long time ago, but for Australian Treasurer Scott Morrison some of the parallels with his current budget balancing act are getting too close for comfort.
Back then, Moody’s Investors Service and Standard & Poor’s pulled their AAA ratings as weak commodity prices wrecked government income and external finances. With resources again in a funk and a widening funding gap, National Australia Bank Ltd. and JPMorgan Chase & Co. said last week Morrison needs to undertake repairs in his May 3 budget to safeguard the country’s top rankings. Moody’s warned Thursday that debt will grow without revenue-boosting measures.