S&P revises outlook for Australian govt bonds to negative

S&P revised the outlook for Australian govt bonds to negative from stable, keeping the rating at AAA. The Aussie has come under immediate pressure after the news.

Additional headlines - via Reuters

S&P watching 'gridlock' in politics, which is likely to impact on budget.

Believe that without remedial action fiscal stance may no longer be compatible with country's high level of external indebtedness

Negative outlook reflects that without implementation of fiscal policy decisions, deficits may persist for several years

Expect that fiscal deficits will improve over medium term, are more pessimistic about government's revenue outlook

Expect Australia's external borrowers to maintain easy access to foreign funding

Consider Australia's banking system to be one of the strongest globally

Estimate headline GDP growth to be around 3% in fiscal year 2016, and unemployment rate has fallen from last year's cyclical high