Worrying About Aussie AAA Is So 1980s as Economy Craves Stimulus
- Markets yawn as S&P fires warning shot on top credit rating
- Politicians shudder at prospect of losing ‘badge of honor’
A reflection of the Sydney Opera House is seen in a window in Sydney.
Photographer: Brendon Thorne/BloombergThis article is for subscribers only.
The silence was deafening.
When S&P Global Ratings fired a warning shot on Australia’s AAA sovereign grade -- cutting the outlook to negative from stable -- the announcement was met with a metaphorical yawn on the currency, equity and bond markets. While local lawmakers scurried to microphones to reassure the electorate, traders instead focused on a global bond rally that’s left little role for ratings among developed nations.