Australia's current credit rating of AAA would not be harmed at all even in the event that the federal budget surplus target needs to be pushed back to provide the necessary leeway for the government's rehabilitation program.

According to credit rating agency Standard & Poor's , the Australian government's solid balance sheet gives enough room for extra expenditures that would pay for the reconstructions necessary to fix the damages left behind by the floods and cyclone Yasi.

That reading, however, failed to dampen the spirited efforts of the federal government to achieve budget surplus come the 2012/13 financial year.

S&P analyst Kyran Curry said that at the moment, Australia's "sovereign's credit quality is very strong, and we don't see the additional spending, or potentially any other fiscal measures the Government is considering, as endangering its AAA rating."

Curry stressed that even if the budget surplus would be delayed by a year or two, a rating downgrade would be remote as "we've got the outlook on stable at the moment and that reflects the sovereign's very strong balance sheet. It's got very low levels of debt compared to its peers."

Curry said that even if all the factors are closely considered prior to the determination of credit rating to the sovereign, including budget surplus delays, the pressure would be minimal and would hardly leave a dent on Australia's AAA rating.

He lauded the government's commitment to deliver the surplus at the appointed time, which he described as both economic and political pledge, noting too that "there is a very strong commitment across the political spectrum to fiscal consolidation."

Most importantly, S&P praised both the federal government and the Coalition for their broad support on Australia's prospect of retaining its AAA credit rating.