- Moody's Investors Service (Moody's) has upgraded
WA to a Aaa credit rating
- Highest possible credit rating reinstated under
Cook Labor Government
- Moody's Aaa rating was lost under the Liberal National
Government in 2014
- S&P Global upgraded WA to AAA credit rating
in June last year
- WA the only State or Territory with AAA credit
rating from Moody's and S&P Global
- Moody's highlights the Cook Labor Government's
strong governance of the State's economy and finances as a key reason for the
upgrade
Moody's Investors Service
has today upgraded Western Australia's credit rating to Aaa, with a 'stable'
outlook, highlighting Western Australia's strong financial management.
This is the highest possible
credit rating and follows a similar upgrade by S&P Global in
June 2022 - after the State lost its AAA rating from S&P in 2013 and
then from Moody's in 2014 under the previous Liberal National Government.
The upgrade means Western
Australia is now the only State or Territory with a AAA credit rating from both
major international ratings agencies, and one of a very small number of
jurisdictions globally with such a rating.
In upgrading the State to
its top credit rating assessment, Moody's highlighted Western Australia's
financial performance to be an "an outlier to its domestic and international
peers", with sustained budget surpluses and material easing in the State's debt
burden under the current Government.
Moody's stated its
assessment reflected that "governance has strengthened considerably over the
past five years, including strong expenditure controls as well as the
introduction of robust and conservative budgeting protocols…" resulting in
improvements in the State's financial metrics.
The report also
highlighted that "despite the economic disruption caused by the pandemic, and
recent weakening of global economic conditions, the State has improved
underlying revenue diversity on account of the ongoing diversification and
rapid growth of the economy relative to other Australian States and Territories".
Western Australia's net
debt levels have fallen from a projected $43.7 billion when the previous
Liberal National Government left office to $27.9 billion by 30 June 2023,
saving the State around $4.3 billion in interest payments.
Comments attributed to Premier Roger Cook:
"Western Australia stands
alone as the only State or Territory with AAA credit ratings from both Moody's
and S&P's - reflecting our years of hard work and responsible financial
management to turn the State's finances around since coming to office in 2017.
"Under my government we
continue the focus on strong financial management, invest in what matters, pay
down debt, diversify the Western Australian economy and create jobs for future
generations."
Comments attributed to Treasurer Rita Saffioti:
"Moody's upgrade of
Western Australia's credit rating to Aaa is terrific news for the State and
follows a similar upgrade to AAA by S&P Global in June last year.
"Since coming to office
in 2017, our Government has worked tirelessly to repair the State's finances,
turning around the record operating deficits and out-of-control increases in
debt under the previous Liberal‑National Government.
"It's taken around nine
years for us to have our Aaa credit rating reinstated by Moody's which
highlights the importance of maintaining strong management of the State's
finances.
"Our strong financial
management has enabled us to meet the challenges of today such as providing
significant cost of living relief to households, providing record investments
into services such as health and education, while setting the state up for the
future by investing in infrastructure and decarbonising our economy.
"The upgrade also means the
State will pay less interest on its future borrowings, which means we can
invest more in key services."
