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ACT Government keeps its AAA credit rating

By johnboy - 16 March 2011 7

Treasurer Katy Gallagher has the happy news that Standard and Poor’s have rated our Government as AAA for credit worthiness.

“The AAA rating is confirmation and acknowledgement of the Government’s strong financial management and the decisions we have taken since the Global Financial Crisis in recovering our budget,” Ms Gallagher said.

Standard and Poor’s has indicated that the ACT Government’s management is a very positive rating factor. They have given considerable weight to the Government’s response to the global economic slowdown and the decisions taken in 2009.

In confirming the Territory’s credit rating, Standard and Poor’s noted that “The ACT government’s management is a very positive rating factor. In 2009, in response to the economic slowdown and resulting drop in revenue, the ACT revised its fiscal strategy, with a primary focus on returning the territory’s operating position to balance by fiscal 2016. Improving revenue expectations have seen the return to surplus timeline revised to fiscal 2014.”

“Over the past two budgets we have worked hard to make sure that in returning the budget to surplus, priority services are maintained, and in some cases enhanced. This was not an easy time, or an easy task and challenges remain. However our budget plan is robust and flexible, and it has been successful to date.”

Standard and Poor’s has also noted that the ACT has the best liquidity of all the states, relatively low debt levels, and that the outlook for the Territory is stable.

Standard and Poor’s also thought sub prime mortgage bonds were rock solid securities to some significant detriment of the whole world.

But Katy says they’re great:

Standard and Poor’s Ratings Services is a respected provider of independent credit ratings and risk evaluations internationally.

What’s Your opinion?


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7 Responses to
ACT Government keeps its AAA credit rating
MrPC 9:37 pm 16 Mar 11

The world would be better off if governments outlawed these corporate rogues/parasites (ratings agencies) instead of sucking up to them to earn their AAAproval.

arescarti42 8:26 pm 16 Mar 11

mr reason said :

“However the ACT government probably does deserve an AAA rating, it has a lot of revenue raising ability in the form of taxes.”

All governments have revenue raising ability in the form of taxes. They don’t all get AAA ratings. It depends on the sustainability of their spending and borrowings among other things.

That’s very true.

Deref 8:16 pm 16 Mar 11

Ah yes – Standard and Poors.

I have a deal for the gubmint: I’ll give them a AAAA credit rating and I’ll only charge them ten times what S & P charged them.

The difference? I have credibility.

LSWCHP 7:17 pm 16 Mar 11

These rating agency bastards set themselves up as bastions of righteousness and moral judgement simply in order to enrich themsleves. In my view they’re in the same category with Pedophile priests, corrupt politicians and bent cops.

Come the revolution….

georgesgenitals 6:47 pm 16 Mar 11

Absolutely arescarti – the ratings agencies were the half the bloody problem of the GFC…

mr reason 6:39 pm 16 Mar 11

“However the ACT government probably does deserve an AAA rating, it has a lot of revenue raising ability in the form of taxes.”

All governments have revenue raising ability in the form of taxes. They don’t all get AAA ratings. It depends on the sustainability of their spending and borrowings among other things.

arescarti42 5:24 pm 16 Mar 11

During the GFC Standard and Poor was very quick to point out that when they give something an AAA rating, it is merely their “opinion”. The GFC showed that their “opinions” are just as worthless as the junk securities they rated AAA.

However the ACT government probably does deserve an AAA rating, it has a lot of revenue raising ability in the form of taxes.

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