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S&P lowers Australia’s ‘AAA’ outlook (NYSEARCA:EWA)

Australia is the first of 11 nations rated “AAA” by S&P to have been put on negative outlook since the coronavirus outbreak.

The decision came after the country’s parliament returned to pass the emergency A$130B ($80B) JobKeeper bill, taking its total tally of fiscal support to A$320B ($197B).

“We expect the Australian economy to plunge into recession for the first time in almost 30 years,” wrote the S&P, “causing a substantial deterioration of the government’s fiscal headroom at the ‘AAA’ rating level.”

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