Election Promises Could Jeopardise Australia’s AAA Rating, Credit Agency Warns

S&P cautioned that campaign pledges ahead of the May 3 elections could widen deficits and increase debt and interest expenses beyond projections.

People make their way in Sydney's central business district during the office lunch break in Australia on March 25, 2025. Saeed Khan/AFP via Getty Images

One of the world’s leading credit agencies, S&P Global Ratings, has put Australia’s major parties on notice, warning the country’s prized AAA credit rating could be at risk if election promises blow out structural budget deficits.

In a report released on April 28, S&P cautioned that campaign pledges ahead of the May 3 general election could widen deficits and increase debt and interest expenses beyond projections.