Australia's prized AAA credit rating looks safe for now, with major ratings agencies saying the federal budget was in line with their expectations.
Standard & Poor's said the budget's forecasts of a decreasing deficit and relatively low government debt relative to gross domestic product are roughly in line with the ratings agency's projections.
"Australia's budget performance over the next few years appears likely to improve, underpinned by spending restraint," S&P said.
Moody's said its stable outlook on Australia's Aaa rating was in part underpinned by the budget's spending measures, including $5 billion for small businesses.
Australia's credit profile was also benefiting from the economic and fiscal buffers built up over two decades of economic growth, which helped cushion the impact of the current challenging environment.
"Australia's Aaa rating is also supported by the flexibility and dynamism its economy has shown over the last several years," Moody's said.
"This dynamism will be tested over the coming years if global commodity prices remain subdued: whether non-commodity investment can offset lower commodity related investment will determine growth trends."
CommSec economists Craig James and Savanth Sebastian said the assurances by the ratings agencies about Australia's AAA credit rating would be positive for the share market.
Australia is one of few nations to enjoy the top rating from the world's leading ratings agencies - S&P, Moody's and Fitch.
But last month, the head of the government's financial systems inquiry, David Murray, warned ratings agencies would be increasingly uneasy about Australia's budget position.
Mr Murray said continued budget deficits would bring Australia's debt levels closer to a point agencies like S&P believed unacceptable for a AAA rated economy.
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