Australia 'safe for investors'

Careful use of Aussie credit cards is among the reasons why Australia has been given a favourable investment rating.

Australia is one of the four safest countries in the world for investors, according to a new report.

The Global Risk Indicator report from Dun & Bradstreet (D&B) ranks Australia alongside Norway, Switzerland and Canada as being rated as DB1d - three grades down from the maximum possible.

While Canada's outlook is said to be deteriorating, however, Australia is considered to be relatively stable.

Consumers' careful use of Aussie credit cards could be one factor behind why this is the case.

D&B has also rated the UK - where personal insolvencies are on the increase - and downgraded it as an investment jurisdiction accordingly.

Recent research from D&B found that 38 per cent of Aussie credit card holders expect to put some of their bills on plastic in the coming months in order to help out with their short-term financial situation.

A similar proportion (39 per cent) could last no more than a month with the funds in their savings account if they were to lose their main source of income.

Written by Joe Letts