S&P Global Ratings is the second ratings agency to affirm a stable outlook for Western Australia at AA+.
The AA+ credit rating from S&P Global follows the assessment of the 2020-21 State Budget released on October 8, 2020.
S&P Global stated ‘the rating affirmation reflects our expectation that Western Australia’s budgetary performance will be materially better than that of its Australian peers’.
The strong position of WA has been credited to the ‘quick containment of COVID-19’, ‘elevated royalty revenues’ and strong financial management.
The ratings agency stated ‘we believe Western Australia’s financial management has improved in recent years. The current government has displayed a track record of robust cost control since its election. We expect this discipline to continue in the lead-up to, and beyond, the next election’.
The S&P credit report follows the Moody’s report, released yesterday, which also affirmed the McGowan Government’s strong Budget management and economic response to COVID-19.
As stated by Treasurer Ben Wyatt:
“There is now no doubt that WA’s safe and strong economic and health response to the COVID-19 pandemic is world leading.
“S&P Global is the second ratings agency to release a report highlighting the strong financial management of the McGowan Government.
“After years of ratings downgrades under the previous Liberal National Government, the McGowan Government has provided stability for Western Australians.
“This stability and strong financial management has given us the capacity to respond quickly to support businesses and households during one of the biggest global economic shocks since the Great Depression.
“Our safe and strong 2020-21 Budget includes a multi-billion WA Recovery Plan and record $27 billion infrastructure investment to ensure the WA economy recovers, stronger than ever.”