Australia's triple A credit rating has emerged unscathed despite a blowout in the federal government's budget forecasts.
Standard & Poor's says its unsolicited ratings and outlook on Australia were not immediately affected by the government's mid-year budget update, released on Monday.
The review showed the deficit has blown out to $40.4 billion for 2014/15 from the $29.8 billion predicted in the May budget.
The blowout comes amid a 30 per cent collapse in the iron ore price and weaker-than-expected wage growth.
S&P said the government's revised forecasts were "broadly consistent with our base case assumptions that deficits will be moderate and declining".
"They do not alter our view that general government debt will remain low relative to GDP," the ratings agency said.
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