Ratings Agency Gives Queensland the Thumbs Up

7 January 2007

Ratings Agency Gives Queensland the Thumbs Up

Treasurer Andrew Fraser today welcomed news that leading ratings agency Moody’s Investors Service had reaffirmed Queensland’s AAA credit rating.

In its yearly update to the markets, Moody’s highlighted Queensland’s “modest debt levels, significant levels of internal liquidity and a dynamic and diverse economic base”.

The stable rating outlook reflects Moody’s view that “the state will successfully manage its fiscal operations despite planned sharp rises in spending to upgrade infrastructure and enhance services”.

“This announcement is a strong endorsement of the Queensland Government’s management of the State’s finances,” Mr Fraser said.

“We are investing in the economic infrastructure of the State at an unprecedented rate with strong investment in capital works projects like South East Queensland’s water grid, while maintaining a Budget in surplus and our AAA credit rating.

“Today’s announcement reinforces the point that our borrowing to meet this responsibility is affordable and appropriate

“If the Liberals want to suggest otherwise, they should add the list of projects they want stopped to the bottom of their press release,” Mr Fraser said.

The Moody’s report noted Queensland’s debt ratios are comparable to AAA ­rated counterparts both in Australia and internationally.

In addition, it emphasised Queensland’s unique position among Australian states in that it holds sufficient assets to fully fund its superannuation liabilities.

“With negative net debt, we have a balance sheet that is the envy of other jurisdictions,” Mr Fraser said.

“These results reflect a strong and growing economy.

“We have maintained strong fiscal discipline as we have delivered record increases in infrastructure investment and service provision to our growing state.”

Media Contact: Chris Ward 0418 424 654