Ratings agency Standard & Poor’s has endorsed the Newman Government’s fiscal repair plan, today reaffirming Queensland’s credit rating as AA+ with a stable outlook.
Member for Burnett Stephen Bennett said the announcement was good news for all Queenslanders.
“It means Queensland taxpayers will not have to pay even more interest on Labor’s debt,” Mr Bennett said.
“The Newman Government is committed to paying down the debt we inherited from the previous Labor Government, so we can keep the cost of living down and deliver the services and infrastructure Queensland needs in the future.”
Mr Bennett said state government finances in Australia, and across the world, were under increasing pressure.
“Credit ratings have deteriorated, with 63 per cent of sovereign economies now rated BBB or below,” he said.
“Despite these tough global economic conditions, Queensland’s credit rating has remained on hold.
“Today’s decision is a solid endorsement of the fiscal repair task we are undertaking.
“Standard & Poor’s said it expected Queensland’s budgetary performance would improve as a result of our significant savings measures, foreshadowing an upgrade in the State’s credit rating over the medium to long term.
“Just last week, Moody’s ratings agency labelled our plan a prudent and positive development.
“Had we not taken action to stop our predecessors’ mismanagement, Queensland most certainly would have faced further downgrades and a higher interest bill.
“The first step in our fiscal repair plan was to stabilise the debt and, in doing so, we have stabilised the State’s credit rating.
“While Shadow Treasurer Curtis Pitt and his Labor mates continue to falsely claim they left the State in a strong financial position, we will make the tough but necessary reforms needed to get Queensland’s finances back on track.”
Standard & Poor’s said:
“We view Queensland’s financial management as a positive rating factor … The new government, following its March 2012 election, is implementing a significant reform program that involves an element of restructuring the shape of the public service and the services it provides. We consider it likely that this will be successfully achieved …”
“The state’s debt burden is high compared to domestic peers, with gross debt at about 150% of adjusted revenues, having risen strongly in recent years. Lower capital spending and an improved operating performance are expected to stabilise the debt position.”
“…over the medium-to-longer term the ratings could be raised if budgetary performance improves significantly due to successful execution of savings measures and structural reforms…”