Standard & Poor's has warned that it could lower Australia's AAA credit rating if parliamentary gridlock on the budget continues as a result of political uncertainty following the federal election.
"Irrespective of the political composition of any new government, we could lower the rating if parliamentary gridlock on the budget continues and Australia's budgetary performance does not improve broadly as we expected a year ago," the ratings agency 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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