The Andrews Labor Government’s strong financial management has been recognised yet again, with Victoria maintaining its triple-A rating with international credit agency Moody’s Investor Services.
Moody’s latest report on the Victorian economy said the rating was attributable to a number of positive factors including “a diverse and robust economy and healthy financial margins”.
Moody’s said Victoria’s outlook was stable, and reflected “expectations of continued strong economic conditions.”
Moody’s also noted Victoria contributed around 24 per cent of the nation’s gross domestic product in 2016-17, while the diversification of its revenue base provided the State with a measure of revenue flexibility.
The agency expects the positive economic trends will also be reflected in employment, which is forecast to rise by 2.0% in 2018-19.
Looking forward, Moody’s anticipates the State’s gross operating balance as a percentage of revenues would average a healthy 7.5 per cent between 2019-2022.
“This provides the State with an ample financial cushion to absorb unsustained revenue shocks as well as some increases in recurrent expenditure,” the report said.
The report also confirmed Victoria’s debt is favourable compared to its domestic and international peers, while the State’s liquidity position is robust, with financial assets of $7.7 billion.
Victoria’s economy continues to lead the nation with the highest state final demand growth anywhere in the country.
Strong economic growth has also lead to a jobs boom, with almost 350,000 jobs created since November 2014 – the vast majority of them full time.
Quotes attributable to Treasurer Tim Pallas
“Today’s report provides independent, international confirmation of Victoria’s position as one of the nation’s economic leaders.”
“Victoria is one of only two Australian states with a triple-A stable outlook credit rating from Moody’s. We’ll continue to work tirelessly to protect our rating and ensure all Victorians share in our state’s economic prosperity.”
“When we were elected in November 2014, we promised Victorians a strong pipeline of economic activity that would create jobs and grow our economy – and we are delivering that.”
Reviewed 19 August 2020