In our view its a very bad outcome for Australia. At the very moment the country needs political stability, especially with whats going on overseas, we get exactly the opposite. This turmoil will not be resolved for a week or so and the uncertainty will have an ongoing effect on business and consumer confidence, especially if it turns out that we indeed have a hung Parliament. The ratings agencies are going to hate this. They will likely come out in the next week or so to send a shot across the bow that the Sovereign will be downgraded unless there is a cohesive plan to reduce the ongoing deficit circus. With the prospects of a slim majority at best, or ahung Parliament at worst,we just do not see this happening. Australia will most likely be downgraded to AA+ after the 2017 budget is delivered. The real question is does this matter?