25 September 2023

ACT credit rating right on the money

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The ACT’s economy has received an upgraded credit rating, taking it to the very top of the ratings for any State or Territory Government in Australia.

Standard and Poor’s (S&P) gave the Territory a AAA rating with a stable outlook.

Announcing the upgrade, Chief Minister, Andrew Barr said the Territory had weathered years of Federal Public Service cuts and despite the continued threat of decentralisation, currently had the lowest unemployment rate in the country with a Budget returned to surplus.

“The strength of our economy has led to record job creation, with more jobs outside of the Federal Public Service in areas including tertiary education, research, IT and our booming hospitality and tourism industries,” Mr Barr said.

“Stable Governments create jobs.

“Over the 12 months to August 2018, 2,100 new jobs have been created in the capital.”

He noted that only Victoria and NSW shared the ACT’s highest possible credit rating.

“This announcement by S&P is a strong testament of the ACT Government’s economic and fiscal management,” Mr Barr said.

“According to S&P, the ratings ‘continue to be underpinned by the ACT’s strong financial management, high-income economy, and exceptional liquidity’,” he said.

S&P continued: “The stable outlook reflects our expectation that the ACT Government will continue to deliver on its priorities broadly within budget, while maintaining high liquidity coverage and containing its debt burden at a manageable level.”

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