- Moody’s reaffirms Victoria’s AAA credit rating with a stable outlook
- Victoria has the highest credit rating of any state in the nation
- Responsible economic management means that households are benefiting from record funding for health, schools and infrastructure
The Victorian Coalition Government has welcomed Moody’s Investor Services announcement reaffirming Victoria’s AAA credit rating with a stable outlook, its highest possible rating, Treasurer Michael O’Brien said today.
Victoria is the only Australian state with a stable AAA rating from both major ratings agencies.
In its rating analysis, Moody’s commended the Coalition Government’s sound financial management, financial flexibility and Victoria’s diverse economic base.
Treasurer Michael O’Brien said Moody’s assessment recognised the Coalition Government’s sound financial management and efforts taken over the last three years to repair the state’s finances from the structural deficit left by Labor.
“Over the last four weeks both major credit rating agencies, Standard & Poor’s and Moody’s, have confirmed the strength of Victoria’s finances,” Mr O’Brien said.
Moody’s reported ‘Victoria’s credit quality reflects a long-term historical record of sound financial performance, ample financial flexibility and a diverse economic base that supports its operations.
The state’s financial performance weakened in 2008/09, when it moved into a deficit position (net borrowing result)’.
‘The government has implemented a budgetary redress program to narrow the deficit and stabilize the debt burden and its continued commitment to achieve these targets is important to the state’s credit outlook’
(Moody’s Investors Service Credit Analysis Victoria, December 2013, page 1).
Mr O’Brien said the rating is a result of the Coalition Government’s strategy to fund frontline services instead of backroom bureaucracy and to grow the Victorian economy through investments in transformational infrastructure.
“The AAA credit rating is important to Victorian families. It means lower borrowing costs for our infrastructure program, saving us around $170 million a year, compared to states such as Queensland and Western Australia with lower credit ratings,” Mr O’Brien said.