Arabic version: خفض التصنيف الائتماني لكوينزلاند يثير تساؤلات طويلة الأمد بشأن الميزانية
According to ABC News, S&P Global Ratings has downgraded Queensland’s credit rating to AA, its first downgrade in 17 years. The agency cited higher wages and softer property-market sentiment, saying these factors would likely weigh on the state in coming years.
Queensland had held an AA+ rating since February 2009, when it was cut from S&P’s top AAA grade. Its long-term outlook is stable. Western Australia is the only Australian state with a AAA rating, while Queensland now shares an AA rating with Victoria, Tasmania and the ACT.
Gene Tunny, director of Brisbane-based Adept Economics, said the lower rating would mean higher government borrowing costs because a stronger rating secures a better deal in bond markets. He said the additional interest expense could affect service delivery or lead governments to consider higher taxes and charges to address fiscal deficits.
Queensland’s total debt is forecast to reach $216.47 billion by 2029–30, a 52 per cent rise over four years. The June budget forecast $10.87 billion in interest costs that year, more than the government plans to spend on infrastructure for the 2032 Olympic and Paralympic Games.
Economist Saul Eslake said the immediate effect on taxpayers would be limited, but warned that over time more tax revenue could be directed to debt interest rather than public services. S&P said it could raise the rating if Queensland delivers sustained operating surpluses and narrower deficits, while weaker financial management could prompt another cut.
