Post election speculation on the possibility of a downgrade to Australia's AAA sovereign credit rating is starting to take on more substance, with Standard & Poor's yesterday declaring it had revised the outlook to "negative", given "growing fiscal vulnerabilities."The outlook is negative to both local currency and foreign currency liabilities.In its announcement S&P wrote that "given the outcome of the July 2, 2016, double-dissolution election, in which neither of the traditional governing parties may command a majority in either house, we believe fiscal consolidation may be further postponed."Credit analysts at Commonwealth Bank explained in a commentary that "a local currency negative outlook of the sovereign has meant the banks too have a negative outlook.  "It's a negative outlook for all [banks]."However, CBA said that the impact on Australian government bonds pricing "was marginal and we see limited reaction to an actual downgrade."?But they added: "A local currency downgrade would be more complicated for the banks, and is potentially worth ten basis points in spread widening."