- Moody's lifts outlook on the State's Aa2 credit rating from 'stable' to 'positive'
- Cites the McGowan Government's 'strong fiscal resolve' as a key factor contributing to the improved outlook
Treasurer Ben Wyatt welcomed today's announcement by Moody's as further evidence that the McGowan Government's plan for Budget repair is working.
Moody's has today confirmed that they will lift the outlook on the State's Aa2 credit rating from 'stable' to 'positive'. This decision follows S&P Global's decision in October last year to improve the outlook on its AA+ rating for the State from 'negative' to 'stable'.
This decision is the first improvement to Moody's rating since the agency downgraded the State's AAA rating under the previous Liberal National Government in 2014. At that time, Moody's highlighted the 'weak policy response to the deteriorating financial and debt position' of the previous Liberal National Government.
In revising its assessment of Western Australia, Moody's notes that today's decision 'recognises strong fiscal resolve of the government following the March 2017 election' and acknowledged that the McGowan Government has 'demonstrated strong fiscal resolve with lower expenditure growth and a commitment to limited spending within targeted ranges'.
The extent of the improvement in the State's finances was highlighted in the 2018-19 Mid-year Review, with the general government sector now forecast to return to an operating surplus in 2019-20, a year earlier than previously forecast and the first operating surplus for the State in six years.
Comments attributed to Treasurer Ben Wyatt:
"The improved outlook for the State's credit rating is a strong endorsement of the McGowan Labor Government's responsible approach to economic and financial management, which is delivering benefits for all Western Australians.
"Moody's announcement acknowledges the McGowan Government's disciplined approach to spending, and signals the State's credit rating is moving in the right direction.
"The upgrade in credit outlook on the back of the McGowan Government's strong financial management is in stark contrast to the previous Liberal National Government, which was downgraded by rating agencies due to their 'weak policy response' and 'limited political will' to address the deteriorating fiscal position."
Treasurer's office - 6552 5900