Ratings agency Fitch has warned that Australia's AAA credit rating could be at risk if "political gridlock" impacts the federal government's ability to manage public finances.
"Political gridlock that leads to a sustained widening of the deficit would put downward pressure on the rating, particularly if the economic environment deteriorates," its Asia-Pacific sovereigns group director Mervyn Tang said on Monday.
The comments follow a dramatic federal election that has left neither the ruling Coalition nor the opposition Labor Party with enough lower house seats to form a majority government.
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