NSW has maintained its Triple-A credit rating in a determination by global ratings agency Fitch.
The Minns Labor Government's "transparent reporting, regular budget updates and disciplined medium-term planning" were cited as key elements for Fitch's decision.
Fitch's assessment affirms the government's debt reduction strategy, with the 2025-26 Budget showing the Government had reined in gross debt by almost $10 billion when compared to the former Coalition government's forward estimates.
This disciplined approach is now saving more than $400 million annually in interest payments, money which is able to be used to secure essential services.
On expenditure, Fitch's outlook notes that "a robust framework, including conservative assumptions and medium-term fiscal rules, help smooth volatility and maintain a stable spending path".
Global economic uncertainties and geopolitical risks are countered by NSW's "robust household consumption and a strong labour market" which "provide a solid foundation to weather these headwinds".
The Fitch rating notes NSW's "large, diversified economy that is likely to keep generating solid revenue growth to enable the state to improve its fiscal position, building operating surpluses and trimming debt growth projections".
Alongside the latest Fitch affirmation, NSW also holds a triple-A credit rating with Moody's and a AA+ rating from S&P Global.
NSW Treasurer Daniel Mookhey said:
"Fitch's Triple-A assessment is a reminder that the Minns Government is putting NSW back on the right track.
"We have returned the budget to a cash surplus, meaning that for the first time since 2020-21 we are not borrowing to pay our day-to-day expenses.
"NSW now has the second lowest level of gross debt of the states, and the lowest rate of expenses growth of all the mainland states.
"The market is recognising that NSW is exercising the highest levels of fiscal discipline seen in years. We will continue to fix the budget without privatisation or wage caps."
