International credit agency Moody’s Investors Service has backed the Andrews Labor Government’s strong economic management by re-confirming the State’s prized triple-A credit rating and stable outlook – a rating it has held for more than 18 years.
Moody’s acknowledged Victoria’s durable economic growth was driving its robust financial performance, while its moderate debt compared to the other states, meant an increase in borrowing to fund new infrastructure projects was manageable.
Treasurer Tim Pallas last week announced that the Government would increase state borrowings – with total net debt to Gross State Product (GSP) to rise to around 12 per cent over the medium term.
This will build the infrastructure projects the state needs and create tens of thousands of new jobs.
These projects include the $15.8 billion North East Link, the $10 billion Airport Rail Link, and the $6.5 billion expansion of the Level Crossing Removal Project.
Moody’s said it expected Victoria’s robust financial performance to remain strong over the budget and forward estimates, with the state’s diversified revenue base protecting it against downturns.
Victoria’s positive economic trends will also be reflected in employment, which is forecast to rise by 2.0 per cent in fiscal 2019, Moody’s said.
Quotes attributable to Treasurer Tim Pallas
“The triple-A credit rating is testament to our strong economic management, our unprecedented infrastructure pipeline and our record investment in the things that matter to Victorians.”
“It’s a foundation to consolidate our success and build a better Victoria – delivering the schools, hospitals, transport and jobs people need.”