Moody's release report on Australia,......>

AUSTRALIA: Moody's release report on Australia, say that Australian government

debt is to rise, but will still be moderate in relation to other Aaa rated

nations. 

- The report adds that the rating reflects high economic, instutional and fiscal

strenth, but there are latent risks. They highlight risks as including high

household debt (as mentioned by the RBA in the SoMP) and the high proportion of

external investors.

- The report predicts that the general debt burden will rise to 42%/GDP in FY

2018 from 36.1% in FY 2015

- As a note non-resident holdings of Australian debt securities are near all

time highs just shy of A$250bln, equating to 55.4%, though this has dropped from

all time highs of around 75%in June 2012.