The Federal Government and commercial banks will be able to keep borrowing cheaply in international credit markets, after S&P Global Ratings revised the government’s AAA rating to “stable” and removed it from a potential downgrade list.

The world’s biggest credit rating agency gave a vote of confidence to Australia’s “strong” economic rebound and suppression of the pandemic.

Australia is now one of only nine countries to hold a AAA credit rating from all three of the major rating agencies.

The S&P upgrade of Australia’s sovereign AAA rating to “stable” from “negative” provides an opportunity for the nation to emerge from the pandemic stronger than most.

After the sharpest economic contraction since the Great Depression, followed by the biggest fiscal expansion in the nation’s history, Australia is among the world’s most creditworthy nations.