Double downgrade a disaster for Victoria
The news that Standard and Poor’s has downgraded Victoria’s long-held AAA credit rating is more evidence that Labor only has a plan for debt and waste.
However, it is even more sobering that Standard and Poor’s has downgraded Victoria’s credit rating down two levels, from AAA to AA, skipping over AA+.
Victoria has maintained a AAA credit rating with agency Standard and Poor’s since 2003.
Last week the Treasurer, Tim Pallas, admitted he believed there was a likelihood the major rating agencies would downgrade Victoria’s credit rating.
As a result of this downgrade, Victoria will now incur higher interest repayments on the $155 billion of debt included in last month’s State Budget.
This will mean money that would have typically been spent on the provision of government services, such as police, firefighters, teachers and nurses, will be used to service Victoria’s unprecedented debt.
As stated by Leader of the Opposition, Michael O’Brien:
“A double downgrade tells Victorians that Labor can’t manage money and we will all pay for it.
“This means tens of millions of dollars in higher borrowing costs to be paid for in more taxes, fewer schools and longer hospital waiting lists.
“Blowing the AAA is another sign that Labor’s reckless management is a threat to our state’s recovery that Victorians cannot afford.”
As stated by Shadow Treasurer, Louise Staley:
“Today is a sad day for Victoria as Daniel Andrews and Labor have trashed our AAA credit rating.
“The fact that Standard and Poor’s has felt compelled to downgrade Victoria’s credit rating two levels to AA demonstrates how worried world financial experts are about the Andrews Labor Government and its ability to manage budgets.
“Successive Victorian governments have managed to maintain Victoria’s AAA credit rating to preserve our international reputation as a responsible manager of government funds and also to minimise interest repayments.
“Considering how many billions of dollars Daniel Andrews and Labor have thrown away on budget blowouts and government waste, it is clear that they now owe Victorians an explanation as to why in the coming years, Victorian taxpayers will be spending millions of dollars servicing debt rather than funding essential services.”