The ACT’s economy continues to be one of the strongest in the world and Standard & Poor’s recent confirmation of our AAA credit rating is further proof of the ACT Government’s strong economic management.
In completing our ratings assessment, Standard & Poor’s (S&P) as looked at a wide range of indicators in the Territory’s budget, including our forward investment plans and the steady path back to balance that we have held to for the last five Budget updates.
S&P’s decision to reaffirm the Territory’s AAA rating, having reviewed our forward Budget plans, confirms we are only spending what we can afford.
It reinforces that we have made sensible use of the Territory’s balance sheet to keep this city growing for residents and for businesses.
It makes clear that the only real risk on the horizon for the Territory’s budget or our credit rating is the Commonwealth Government.
The negative outlook on the ACT’s credit rating reflects S&P’s view about the potential for a downgrade for the Commonwealth in the near future, which would see all other jurisdictions downgraded with it.
Maintaining our AAA rating demonstrates that the Government is managing the Territory’s finances and economy in a responsible way.
The AAA rating allows the Government to deliver infrastructure and services to the community at a lower cost than would otherwise be the case.
As one of only three AAA-rated states or territories in Australia – and one of just 26 AAA-rated sub-national jurisdictions outside of the US – our credit rating is a useful selling point for attracting investment to Canberra.
A strong economy with global investment is good for local business. It shows Canberra is the right environment for businesses to flourish.
We have big plans for Canberra, in the city renewal precinct and beyond.
We have a clear fiscal plan to invest for Canberra’s growth, while maintaining a strong balance sheet, and this is what S&P has acknowledged by reaffirming the Territory’s AAA credit rating.