The Marshall Liberal Government has today welcomed an announcement by global ratings agency S&P that it has upgraded South Australia’s long-term credit rating to AA+ based on a stable economic outlook and expectations of sustained operating surpluses.
S&P reported: “South Australia’s disciplined approach toward expenditure measures is likely to sustain its operating surpluses.”
“The government is taking material steps to achieve savings targets, which will contain expenditure growth and debt levels.”
“The government (also) plans to invest in productive infrastructure.”
“As a result, we are raising our long-term rating on South Australia to AA+ from AA.”
Treasurer Rob Lucas welcomed the result, which comes a week after ratings agency Moody’s maintained SA’s Aa1 stable credit rating.
“South Australia’s credit rating upgrade to AA+ by S&P reflects the Marshall Liberal Government’s prudent and responsible budget,’’ said Treasurer Lucas.
“Coming soon after Moody’s reaffirmed its Aa1 rating of the State, the S&P AA+ rating confirms the focus of the government on better services, lower costs and more jobs and a State budget establishing a strong foundation for a sound financial future.
“In particular we welcome S&P’s acknowledgment of the Government’s ‘disciplined approach toward expenditure measures’.
“Our budget outlined a completely new approach to meeting expenditure targets by rejecting the previous ‘salami slicing’ approach and replacing it with a simplified version of zero based budgeting.
“Put simply the Marshall Liberal Government has made the hard decisions to actually stop funding many of the former Labor government’s projects, programs and priorities.
“An upgraded credit rating to AA+ sends a clear message to global markets and potential investors that South Australia is open for business.”