Queensland withstanding Global Financial Crisis - retains AAA credit rating

Queensland Treasurer Andrew Fraser has welcomed news that major ratings agency Moody’s has, once again, reaffirmed the state’s AAA credit rating.

Mr Fraser has said the assessment by Moody’s underscored the size of the challenges in 2009.

“The confirmation of our AAA credit rating is important – in a world where frightened markets are searching for sound, safe investment opportunities Queensland is affirmed as a top quality choice.

“Equally the assessment identifies the challenges of maintaining our capital spend against a rapidly deteriorating economic environment.’’

Mr Fraser said that in its yearly update to the markets Moody’s had concluded that Queensland would continue to successfully manage its fiscal operations - a clear vote of confidence in the capacity of the Bligh Government to manage the state’s finances through the challenges of the global financial crisis.

“Moody’s state that Queensland’s credit quality reflects moderate debt levels, significant levels of internal liquidity and a dynamic and diverse economic base.

Mr Fraser said the Bligh Government had put forward a comprehensive response to the global financial crisis in December’s Major Economic Statement.

“In these difficult times our number one priority has been jobs. That’s why we took the decision to quarantine our $17 billion capital works program which supports 119,000 jobs for Queenslanders.

“The Moody’s report is a reinforcement of our economic and financial policy credentials in the face of growing economic uncertainty.’’

Mr Fraser said the report noted ‘’strong governance and management factors include multi-year budget projections, prudent forecasts and contingency provisions which have contributed to a strong record of meeting or exceeding targets over many consecutive years.’’

“The trite claims of the Opposition about transparency and scaremongering about debt stand ridiculed,’’ he said.

Media contact (Treasurer’s office): 3224 6361 or 3224 5982