NewsBite

Federal debt load 'pushing against' AAA boundary, warns NAB

The Commonwealth's growing debt load is rapidly approaching the point at which Australia will lose its AAA credit rating, warns a report by NAB.

Jacob Greber
Jacob GreberSenior correspondent
Updated

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Two of the nation's big four banks have warned the federal government risks losing the patience of credit agencies, whose AAA rating for Australia has helped underwrite some of the lowest household mortgage rates on record.

With politicians likely to be tempted into new and underfunded spending promises in the looming federal election, National Australia Bank's global head of policy research, Peter Jolly said Commonwealth debt was now "pushing against ratings agencies' AAA boundary".

Loading...
Jacob Greber writes about politics, economics and business from Canberra. He has been a Washington correspondent and economics correspondent. Connect with Jacob on Twitter. Email Jacob at jgreber@afr.com

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Read More

Latest In Economy

Fetching latest articles

Most Viewed In Policy

    Original URL: https://www.afr.com/news/economy/federal-debt-load-pushing-against-aaa-boundary-warns-nab-20160411-go3fey