Legislative Council: Tuesday, November 01, 2022


Credit Rating

156 The Hon. H.M. GIROLAMO ().28 September 2022). Can the Treasurer advise—how will the government continue to achieve AA+ credit rating?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector): The Treasurer has advised:

The Malinauskas Labor government is committed to implementing its policies in a fiscally sustainable manner.

Credit ratings are reviewed on an ongoing basis, with a major review usually undertaken at least once every year following the release of the state budget.

International credit rating agencies S&P Global, Moody's and Fitch have all completed reviews of South Australia's credit rating following the release of the 2022-23 state budget.

South Australia has retained the second highest credit rating available from these agencies despite pressures from rising inflation, higher interest rates, and challenging global economic conditions.

South Australia is currently rated at AA+ by S&P Global, Aa1 by Moody's, and AA+ by Fitch. The credit releases issued by the rating agencies after the 202223 Budget included comments such as:

'South Australia's state budget 2022-23 (fiscal 2023 budget) incorporates the implementation of the new government's spending commitments which will be predominately funded through reprioritisation of expenditure and sustain operating surpluses, a credit positive.'(Moody's)

'Our ratings on South Australia are supported by the general strength and wealth of its economy, which has outperformed most of its international peers since the Covid-19 pandemic. The state also benefits from an extremely strong institutional framework and liquidity coverage. This is captured in the state's strong financial management.' (S&P Global)

'Importantly, the revenue outturn underpins our expectation that South Australia will achieve its target of a net operating surplus (total revenue minus total expenditures) from fiscal 2023, even in the face of expenditure pressures from rising inflation, higher interest rates and a more challenging global economic backdrop.' (Moody's)

The Malinauskas Labor government will continue to manage the state's finances in a prudent manner while delivering investments to support the economic growth of the state.