Western Australia Treasurer Ben Wyatt

S&P Global Ratings Maintain Western Australia’s Credit Rating

Victor P Taffa

• Western Australia’s credit rating confirmed by S&P Global Ratings as AA+ (negative outlook)
• Report highlights the risk to the State’s finances of the Liberal Party’s decision to block key Budget repair measures
• Agency praises the State Government’s commitment to improving budgetary performance

Ratings agency S&P Global Ratings has today confirmed the State’s credit rating as AA+ negative outlook.

Western Australia’s AAA credit rating with both Moody’s and S&P Global Ratings was lost under the previous Liberal National government.

“Decision by the Liberal and National Party to block the Government’s proposed increase to the gold royalty has been found to be having been something which directly put the credit rating at risk.” Treasurer Ben Wyatt said.

“Repair of the State’s finances is the most critical issue facing the McGowan Government, and we will continue to do all we can to repair the disastrous set of finances we have inherited.”

State’s credit rating was last downgraded by Moody’s in February 2016, from Aa1 to Aa2. S&P Global Ratings has had the State on AA+ with a negative outlook since July 2015.

Credit Rating report highlighted the State’s Government’s strong financial management and prudent approach to debt management, and determination to restore sustainability to the finances.

S&P also noted its expectation that the revenue forgone by the Liberal Party-defeated gold royalty increase will be replaced by other measures.

However, it was also noted that the inability of the Government to reach its revenue targets remained a risk for the State.

Abbreviations

(S&P)              Standard & Poor’s