Moody's sees Australia's growth between 2-3 pct in 2017

Moody's Investors Service in a report, "Non-Financial Corporates -- Australia, 2017 Outlook: Stable for All Sectors", released on Wednesday said that the outlook for corporate sectors in Australia is stable during 2017 and most corporates also show solid balance sheets and liquidity.

Despite pockets of weakness in the Australian economy, with mixed showings from companies within the resources and retail spaces, Moody’s expects stability in Australia's non-financial corporates. Moody's noted that despite challenges, companies has not taken on too much leverage in the wake of the financial crisis.

Moderate financial leverage and refinancing needs, combined with reduced dividends, cost-cutting programs and debt pay-downs had supported improvement in corporate balance sheets compared to a year ago.

Maurice O’Connell, a Moody’s vice president and senior credit officer said that every sector within the economy had earned the ‘stable’ outlook given a steady growth outlook for the local economy.

“Our core outlook is for a modest increase in earnings growth, driven by an improvement in the domestic economy, with 2-3 per cent GDP growth in 2017 and accommodative monetary policy settings.”