Palaszczuk Government delivers stable ratings outlook

Premier Annastacia Palaszczuk and Treasurer and Minister for Trade and Investment, Curtis Pitt, have welcomed a statement by ratings agency Moody’s Investor Services returning their outlook on Queensland to stable after applying a negative outlook in the wake of Tim Nicholls’s disastrous first budget as Treasurer in 2012.

“The decision by Moody’s to affirm our Aa1 rating — equivalent to AA+ — and change their outlook on the state to stable from negative is recognition of the strong financial management delivered under our economic plan,” Ms Palaszczuk said.

“Since the election in January 2015 my government has been resolute in our focus to reinvigorate Queensland’s economy with higher growth, lower unemployment and lower debt. These efforts have been recognised by this landmark decision by Moody’s.”

Mr Pitt said Labor’s disciplined approach to economic management had underpinned the improved outlook by Moody’s.

“The Moody’s rating indicates that the affirmation of the Aa1 ratings reflects Queensland's improved financial performance over recent years,” Mr Pitt said.

“It is encouraging that the stable outlook reflects Moody's view that Queensland's fiscal position over the medium term has improved.

“As I have said over the course of the past two state Budgets, we have implemented an ambitious economic plan which includes the restoration of frontline services, infrastructure investment and job creation initiatives to drive economic growth.

“Moody’s have indicated the government’s credit quality is also supported by the state’s growing and diverse economy. 

“Moody’s has said: ‘Queensland is forecast to grow faster than Australia’s other states, with a forecast 4% rise in GSP in 2016-17, driven by exports, while household consumption continues to show steady growth and housing investment will grow solidly.’ 

“Moody’s has also noted that Queensland is unique among Australian states in that it has substantial financial holdings that are more than sufficient to fully fund its superannuation obligations.

“I met with key Moody’s representatives in London in August 2016 and reiterated our ongoing commitment to measured and responsible financial management for Queensland and I also outlined our economic plan to deliver higher growth and more jobs across the state.

“While we acknowledge this positive rating outcome, we know there’s more work to do, particularly in regional Queensland.

“That’s why we have a suite of job creating policies and programs to deliver more inclusive economic growth and prosperity across the state. 

“The continued commitment of the government to constrain spending to within the pace of revenue growth which brings the state's budget back into balance and a significant decline in debt levels could result in upward ratings pressure,” Mr Pitt said.

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