Moody’s lifts outlook on WA credit rating

Moody’s has lifted the outlook on Western Australia's Aa2 credit rating from ‘stable’ to ‘positive’, citing the state government's "strong fiscal resolve" as a key factor.

It is the first improvement to Moody’s rating since the agency downgraded the state’s AAA rating in 2014.

In its assessment, Moody’s said the government had demonstrated strong fiscal resolve with lower expenditure growth and a commitment to limited spending within targeted ranges.

The announcement follows S&P Global’s decision in October last year to improve the outlook on its AA+ rating for WA from ‘negative’ to ‘stable’.

Treasurer Ben Wyatt said it was a strong endorsement of the government’s responsible approach to economic and financial management.

"Moody’s announcement acknowledges the McGowan government’s disciplined approach to spending, and signals the state’s credit rating is moving in the right direction," Mr Wyatt said.