International credit agency Moody’s Investors Service has reconfirmed Victoria’s triple-A credit rating, giving the State Government the financial resources it needs for infrastructure projects.
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.
Victorian Treasurer, Tim Pallas, announced in late November 2018 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 promised by the government, including 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.
“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,” Mr Pallas said.