Australia may be placed on a “negative outlook” by S&P - GS

FXStreet (Bali) - There is potential for Australia to be placed on a “negative outlook” by S&P rating agency in coming months, Goldman Sachs analysts Tim Toohey and Andrew Boak write in note, Bloomberg reports.

According to the analysts, cited by Bloomberg: "S&P’s recently updated ratings methodology is consistent with a potential downgrade of Australia’s AAA status with a stable outlook to AAA with a negative outlook."

“It is now possible to create a feasible scenario where Australia forfeits the highest possible sovereign rating for the first time in more than a decade. Downgrade of the Australian sovereign would likely result in a similar sized downgrade to the Australian banks", Goldman's Toohey and Boak said.