Australia: MYEFO offered little new news on the fiscal front - TDS

Australia’s Mid-Year Economic & Fiscal Outlook (MYEFO) offered little new news on the fiscal front, expecting net debt to peak at -19% of GDP by mid-2019 as noted by the analysts at TDS.

Key Quotes

“The risk of a S&P Global ratings downgrade to AA+ remains above 50% but a decision on is unlikely to be made until after the 2017-18 Budget is released in May 2017.  Our $A100b ACGB issuance program has upside due to (1) obstructionist Senate potentially not passing ‘baked in’ spending cut reform; and (2) new NBN loans are to be added from next year’s bond program. AOFM needs to issue up to $A2b/week in tenders and two modest-sized syndicates to reach this year’s target. NBN loans commence from 2017-18, requiring even more syndicates to fund.”