Strong financial management has helped South Australia maintain its AA credit rating.
The international credit agency Standard & Poor’s announced this morning that SA’s economy and liquidity were strong and the state had low liabilities.
“The stable outlook reflects our view that the state’s financial management will remain strong over the next two years, and its budgetary performance will strengthen with small operating surpluses and a smaller capital program,” Standard & Poor’s stated.
“The rating affirmation on [SA] reflects our view of the extremely predictable and supportive institutional framework benefiting state’s and territory governments in Australia, plus the state’s strong financial management, very strong economy, strong liquidity and low contingent liabilities.
“South Australia’s average budgetary performance and contingent liabilities and moderate debt burden partially offset these strengths.”
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SA Treasurer Tom Koutsantonis welcomed the rating agency acknowledging the state’s strong financial management.
“The 2015-16 state budget shows the state government strengthening the state’s finances over the forward estimates, while delivering a $985 million stimulus package including major tax reforms and targeted investments in growth industries to boost the economy and create jobs,” Koutsantonis said.
SA lost its AAA rating in 2012.
The prized credit rating is allotted to businesses and governments to mark their ability to repay debt.
