Global ratings agency Moody's has maintained NSW's Triple-A credit rating with a stable outlook.
The state's fiscal discipline, large and diverse economy, and substantial liquidity were highlighted in Moody's opinion as key factors supporting the rating.
The Minns Labor Government's commitment to expense constraint was also flagged as an element in Moody's decision.
The NSW economy is expected to remain resilient in the face of expected rising geopolitical and global trade uncertainties.
NSW's gross debt was reined in by almost $10 billion in the 2025-26 budget compared to the former government's forward estimates, a result which played into Moody's assessment.
This debt reduction is now saving more than $400 million annually in interest payments, money able to be used to secure essential services.
Alongside the Moody's update, NSW had its triple-A credit rating with Fitch affirmed earlier this month, and holds a AA+ rating from S&P Global.
Treasurer Daniel Mookhey said:
"Moody's Triple-A rating is another acknowledgement of the Minns Labor Government's fiscally disciplined stance.
"We're no longer borrowing to pay our day-to-day expenses after returning the budget to an operating cash surplus.
"NSW now has the second lowest level of gross debt of the states and the lowest rate of expense growth of all the mainland states.
"The market is recognising our sound approach. We will continue to fix the budget without privatisation or wage caps."
