Downgrade not certain

Press, 1 June 1989, Page 47

Downgrade not certain

NZPA-AAP Sydney The review of Australia’s long-term foreign currency debt rating by New York-based Moody’s Investors Service did not necessarily mean it would be downgraded, Moody’s associate director, Mr David Levey, said. Moody’s often reaffirmed ratings of countries under review, he said in a telephone interview from New York. “In a significant number of cases, the current rating is confirmed,” he said. “We do say the rating is on review for a possible downgrading but we seriously intend this to be a review. The outcome is

not preordained,” Mr Levey said. The rival agency, Standard and Poor’s, has said it would maintain its AA-plus rating for Australia. The two agencies were independent and often disagreed on a country’s rating at any given time, Mr Levey said. “There are a number of cases in which we have different ratings,” he said. “We make thoroughly independent judgments.” Moody’s announcement of the review late on Friday sent local markets into a tailspin early this week when dealers said many assumed the downgrading was “on the cards.”