Budget deficit and high debt see ACT's credit rating downgraded to AA

The ACT is equal worst with Victoria on the national credit ladder after a decision by S&P Global to reduce the territory's credit rating from AA+ to AA.

The group says the ACT has proportionally high debt relative to other Australian jurisdictions, and its budget is expected to remain in deficit until 2027.

Treasurer Chris Steel acknowledged the agency's rating, and says the budget is putting the territory on the right track.