WA keeps its credit rating, for now

Western Australia has retained its AA+ credit rating with a negative outlook, S&P Global Ratings confirmed today, as revenue remained a risk to the rating in the future.

The state’s credit rating was last downgraded by Moody’s in February 2016, from Aa1 to Aa2. S&P Global Ratings has had the state on AA+ with a negative outlook since July 2015.  

S&P expected the revenue foregone from the defeated gold royalty increase to be replaced by other measures.

Treasurer Ben Wyatt said the decision by the Liberal and National parties to block an increase to the gold royalty directly put the credit rating at risk.

“The repair of the state’s finances is the most critical issue facing the McGowan government, and we will continue to do all we can to repair the disastrous set of finances we have inherited,” he said.