Major Credit Rating Agency, S&P, has only delivered a stay of execution to Victoria, by temporarily deciding to maintain Victoria's AA Credit Rating.
The Agency has sent a clear warning to the Allan Government that it must lift its game when it comes to controlling its spending and managing infrastructure projects, particularly the Suburban Rail Loop (SRL).
The SRL has come in for special attention by the agency, which predicts the risk that the "project will cost more than the government forecast". More specifically, it warns that the Allan Government should not proceed with the project without Federal Government support, or "it could weaken the state's fiscal outlook."
In temporarily maintaining the rating, the agency has warned that our state's rating could be downgraded if "fiscal performance underperforms our forecasts, particularly leading into the 2026 state election, as demonstrated by weaker operating margins, higher infrastructure spending, or escalating project costs compared with our expectations."
Shadow Treasurer James Newbury said, "the things that will save our credit rating from being downgraded are the very things the Allan Labor Government is incapable of doing."
"It can't manage money, and it can't manage projects, which are the very things S&P says the Allan Government must do. Labor's budget and our credit rating are on life support."
"The credit rating announcement is nothing more than a stay of execution. The agency has warned that our state has no real plan to fund its infrastructure spending."
"Victoria's credit rating won't be safe until Labor controls its overspending and reduces the giant debt bomb hanging over our heads," Mr Newbury said.
The Shadow Minister for Finance, Bridget Vallence said: "The Allan Labor Government was forced to develop a fiscal strategy after credit ratings agencies threatened a rate cut, and now that they're failing to deliver on every measure and cannot manage cost blowouts on infrastructure, they're on serious notice."
"Under Labor, Victoria has the worst credit rating in the country and Victorians are paying the price."
