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.