VIC:Aust buffered from US credit rating drop

AAP General News (Australia)
08-06-2011
VIC:Aust buffered from US credit rating drop

Finance analyst CHRIS WESTON from IG Markets says Australia remains relatively buffered
from a drop in the world's official global benchmark.

Standard and Poor's overnight downgraded its credit rating for the US from AAA to AA+,
the first time in history the US rating has been downgraded.

CHRIS WESTON says the downgrade has been anticipated since April has come at a very
bad time, and forced selling in the pension funds sector may particularly bear the brunt
of the drop.

He says while investors should prepare for a rocky opening in Monday trade, people
should remember that expectations of a downgrade have meant the cut had already been priced
into the equity market.

He says Australia remains relatively protected from the US downgrade.

AAP RTV ees/wz

KEYWORD: US RATINGS AUST (MELBOURNE)

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