QUEENSLAND'S CREDIT RATING IN DANGER

Written on the 27 November 2012

QUEENSLAND'S CREDIT RATING IN DANGER

QUEENSLAND’S AA1 credit rating is in danger, with ratings agency Moody’s changing the state’s outlook from stable to negative.

Despite the downgrade Queensland Treasurer Tim Nicholls (pictured) says Moody’s analysis backs the government’s tough budget.

“Moody's recognises the value of the Newman Government’s most important Budget in a generation that starts the job of repairing Queensland’s finances,” says Nicholls.

It notes the Government’s plan to fix the budget is a "more prudent fiscal approach" and "is a positive development".

“Importantly the report also noted the necessity to maintain a prudent fiscal approach is necessary to avoid a further downgrade.”

Moody’s says Queensland financial performance deteriorated over the past five years, with pressures increased by a lack of spending discipline.

Net direct and indirect debt increased from a moderate 58 per cent of revenues, or 9 per cent of GSP in 2006/7, to 126 per cent of revenues, or 21 per cent of GSP, in 2011/12.

“The Government’s real concern was, given the power of debt and the number of deficits incurred over the last five years of a reckless Labor government, we would have suffered yet another downgrade,” says Nicholls.


Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter