Budget deficit and high debt see ACT's credit rating downgraded to AA
Budget deficit and high debt see ACT's credit rating downgraded to AA
www.abc.net.au
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.
"It sounds as though the treasurer is prepared to wear having to pay slightly higher interest rates on the territory's debt in order to be able to press on with the infrastructure spending which his government has decided is more important."
I can accept this pretty easily. Not to say they couldn't more efficiently run the books, but scrapping I infrastructure projects to pay slightly less interest on debit would rarely work out.