In a further testament to the Marshall Liberal Government's strong financial management, independent ratings agency, Fitch Ratings, has upgraded South Australia to AA+ (Outlook Stable) from AA.
While some other states, including New South Wales and Victoria, had their credit ratings downgraded last year and lost their AAA rating, South Australia has defied this trend – remaining steady (S&P Global and Moody's), or improving (Fitch).
A day after Treasurer Rob Lucas delivered the Mid-Year Budget Review which continues to chart the state's ongoing path out of the pandemic – with nation-leading economic growth and a forecast return to modest surpluses from next financial year - Fitch has recognised SA's 'strong financial management'.
"The upgrade reflects Fitch's expectation that South Australia's economy will continue a steady recovery from the COVID-19 pandemic to underpin a return to healthy operating surpluses, supported by the state's strong financial management," Fitch says.
"This will keep the state's rising debt burden at manageable levels amid a low borrowing cost environment."
Non-financial public sector net debt is lower across the forward estimates, compared with the projection at the time of the State Budget.
Treasurer Rob Lucas welcomed the upgrade by Fitch, as a further independent endorsement of the Government's sound fiscal management, with record infrastructure investment, record economic stimulus and more people employed full-time now than ever before.
"The Marshall Government continues to drive the state's ongoing economic and jobs recovery from COVID, and we welcome the latest independent ratings agency to reaffirm its confidence in our approach to sound financial management," Mr Lucas said.
Following the Marshall Government's first State Budget in September 2018, S&P Global upgraded South Australia's rating from AA to AA+.
