MOODY’S CONFIRMS AAA
7 May 2013
Treasurer Mike Baird today welcomed the reaffirmation of NSW’s triple-A credit rating by Moody’s and said it was an endorsement of the NSW Government’s strong fiscal strategy.
“Today’s announcement by Moody’s confirms that the NSW Government is delivering strong, stable and responsible economic management,” said Mr Baird.
“The NSW Government has been working hard to protect its Triple-A credit rating. We have taken a number of difficult decisions to address the massive hit to our revenues and to control the State’s expenses, and we welcome the endorsement of this approach.”
Moody’s report states: “ New South Wales’ ratings reflect its diverse economic base, considerable budget flexibility, and secure and predictable grants from the Commonwealth. The ratings also take into account the state’s commitment to achieving budgetary redress over the medium term through a reduction in expenditure growth.
“While our tough decisions have not been popular, they have enabled us to put more jobs on the frontline, to invest in the infrastructure needed across this state, and to prioritise funding for major reforms like the NDIS and Gonski,” said Mr Baird.
“It’s pleasing that Moody’s has acknowledged the strength of NSW’s rating compared to most of the other states and territories.
“The positive impact of our recent ports transaction on strengthening our balance sheet has also been recognised, but it remains a financial balancing act.
We inherited $55 billion of net debt, a $30 billion infrastructure backlog, and before the last Budget, NSW lost $5.2 billion in GST revenue.
“Responsible economic management is not easy, but this Government will continue to make the hard decisions, and the right decisions, to see our state’s finances return to a sustainable position,” Mr Baird said.