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SYDNEY, July 7 (Xinhua) -- Australia is likely to loose its coveted AAA sovereign credit rating after global ratings agency Standard & Poor's revised its outlook to negative on the nation's fiscal vulnerabilities following the still undecided national election.

Australia has joined a long list of developed countries undergoing political uncertainty as the rise of the disenfranchised populace gains traction, where a likely uncooperative upper house Senate will make it much harder for any Australian government to implement much needed fiscal reform.

While Standard and Poor's on Thursday affirmed Australia's AAA credit rating, the agency said it could be downgraded within the next few years.

"The negative outlook on Australia reflects our view that without the implementation of more forceful fiscal policy decisions, material government budget deficits may persist for several years with little improvement," S&P said in statement on Thursday.

"Ongoing budget deficits may become incompatible with Australia's high level of external indebtedness and therefore consistent with a AAA rating."

The warning is a blow to the incumbent government who is within striking distance of being returned to power following the national election on Saturday after campaigning on their economic credentials.

"This is a reminder that the commitment to budget repair, to reducing the managing our public finances responsibly must be a very high priority," Australian Prime Minister Malcolm Turnbull told reporters on Brisbane.

The ratings houses have been consistently warning the Australian government that halting ballooning government spending was not enough, arguing revenue raising measures were also needed to curb growing debt.

Both major political parties however pork-barrelled their way around Australia during the marathon eight-week campaign announcing new spending and tax reduction policies, headlined by the incumbent's 50 billion Australian dollar corporate tax cut - to be gradually introduced over 10-years - that was likened to former U.S. President Ronald Reagan's principle of "trickle down economics".

While loosing the AAA rating might not be as dire for sovereign debt as Australia is only one of eight to hold the coveted rating, it will increase bank financing costs and debt consumer and business sentiment.

"The obvious concern is with such a high level of foreign ownership of Aussie debt (60.4 percent as of March 2016) that we may see forced sellers, which could cause. Wholesale Cheap NHL Jerseys   Wholesale Jerseys China Online   Wholesale College Jerseys   Wholesale Nike NBA Jerseys   Wholesale MLB Jerseys Cheap   Wholesale Retro Jerseys   Wholesale Adidas NHL Jerseys   Wholesale Nike NFL Jerseys China   Wholesale College Jerseys From China   Wholesale Basketball Jerseys 
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