The credit implications of Australia’s ongoing bushfire season are limited given the contained near-term economic costs (0.1% of GDP) and the government’s ample fiscal buffers. However, severe bushfires and other natural disasters related to climate change are likely to become more frequent and will result in rising and recurring costs for Australia’s general and local governments.

Recent US government warnings point to a heightened risk of Iranian cyberattacks. Although predicting which sectors or issuers would be most at risk is difficult, there would likely be a wide range of potential targets. Any credit impact would depend on the scale, scope and duration of the attack.

Higher enrollment and rising tuition have historically been the main drivers of growing student loan balances, but slow repayments have now become the primary driver of growing student debt. Outstanding debt will continue to grow, with ongoing social and credit implications.

As governments limit carbon emissions and demand for sustainable energy sources grows, investors are increasingly placing a premium on noncarbon emitting resources, which is driving the value of hydroelectric power generation higher. In addition to its highly sustainable nature, other inherent characteristics — including reliability, flexible and cost-effective operations, and a long asset life — support long-term investment prospects for hydro generation.