CREDIT RATINGS – VICTORIA

Victoria turns blind eye to credit downgrade risk

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Original article by Lily McCaffrey
The Australian – Page: 6 : 4-Jun-25

Victoria’s Treasurer Jaclyn Symes will hold meetings with global credit ratings agencies in New York on Friday. Symes has told parliament’s public accounts and estimates committee that there has been no indication from the ratings agencies that Victoria’s credit rating may be subject to an unfavourable review. The issue came under scrutiny earlier in 2025 when S&P Global warned that the government must demonstrate "fiscal discipline" if it hopes to retain the state’s AA/Stable credit rating, which had been downgraded from triple-A in 2020. The Treasury has advised that it has not undertaken any modelling on the impact of a further credit rating downgrade on the state’s budget position.

CORPORATES
VICTORIA. DEPT OF TRANSPORT, S&P GLOBAL RATINGS

Allan govt under fire for keeping credit report secret

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Original article by Shannon Deery
Herald Sun – Page: Online : 20-Aug-24

The Victorian government’s reputation for transparency is under scrutiny following the revelation that it has not released a private credit assessment that was completed two years ago. Treasurer Tim Pallas commissioned the report from credit ratings agency Fitch in March 2022, which included an assessment of the state’s financial position. Meanwhile, rival ratings agency Standard & Poor’s recently warned that Victoria’s credit rating may be further downgraded if the state government proceeds with the Suburban Rail Loop project without federal funding. S&P downgraded the state’s credit rating by two notches to AA in late 2020.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, FITCH RATINGS LIMITED, STANDARD AND POOR’S FINANCIAL SERVICES LLC

Vic ratings warning over debt

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Original article by Gus McCubbing, Patrick Durkin
The Australian Financial Review – Page: 1 & 8 : 8-May-24

The Victorian government’s budget papers show that it expects to post an operating surplus of $1.5bn in 2025-26. However, the state’s net debt is forecast to rise from $156.2bn in mid-2025 to $187.8bn by 2028. S&P Global Ratings analyst Anthony Walker says the firm expects Victoria’s gross debt as a proportion of revenue to rise above 200 per cent of operating revenue. He warns that the state’s credit rating could be downgraded again if its debt rises to 240 per cent of operating revenue or interest payments rise to 10 per cent of operating revenue. Meanwhile, interest payments on the state’s debt will rise from $6.5bn in 2024-25 to $9.4bn by 2028, and interest as a share of revenue is forecast to rise from 6.3 per cent to 8.8 per cent.

CORPORATES
S&P GLOBAL RATINGS