Standard & Poor's has maintained its AAA sovereign credit rating for Australia after the election of the coalition government.
"The ratings on Australia reflect the country's significant fiscal and monetary flexibility, economic resilience, and public policy stability," the ratings agency said on Monday.
"We expect the new government to pursue a broadly similar fiscal strategy to the previous government, targeting narrowing budget deficits over time."
S&P said that after coalition's pre-election announcements, it expects new spending measures, including infrastructure projects and the paid parental leave scheme, to be "broadly offset" by savings measures, notably cuts to the public service household payments.
It also recognised the possibility of further spending cuts.
"We expect the new government to shortly commission a review of government finances, which may pave the way for further spending cuts," S&P said.
