21/08/2009 - 11:36

WA's Triple-A credit rating confirmed

21/08/2009 - 11:36

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Following analysis of the state government's financial strategy, international ratings agency Moody's has confirmed Western Australia's Triple-A credit rating, ranking the state at the lowest possible level of risk.

WA's Triple-A credit rating confirmed

Following analysis of the state government's financial strategy, international ratings agency Moody's has confirmed Western Australia's Triple-A credit rating, ranking the state at the lowest possible level of risk.

The state government said the rating follows careful management of the state's finances including the introduction of an FTE ceiling; a Wages Policy; the Works Reform Plan; the Economic Audit; the Efficiency Dividend; a Capital Works Audit; and a Red Tape Reduction scheme.

 

 

Full announcement(s) below:

 

 

 

Moody's reaffirm Western Australia's Triple-A credit rating
Portfolio: Treasurer

International ratings agency Moody's has confirmed Western Australia's Triple-A credit rating after analysing the Liberal-National Government's financial strategy.

Moody's ranking of WA at the lowest possible level of risk follows careful management of the State's finances by the Liberal-National Government, including the introduction of an FTE ceiling; a Wages Policy; the Works Reform Plan; the Economic Audit; the Efficiency Dividend; a Capital Works Audit; and a Red Tape Reduction scheme.

Moody's announcement stated:

'We are evaluating the government's proposed plans to achieve budgetary redress in order to assess to what extent there is a clear, detailed and credible path towards reversing erosion of financial and debt positions. Over the longer term we will also be monitoring governments' resolve to implement tough measures that might be required depending on the pace of recovery of state revenues.'

Treasurer Troy Buswell said the announcement vindicated the tough decisions taken by the State Government to ensure WA can keep the cost of debt low as it invests in job-creating projects such as Gorgon, the Oakajee Port and the Ord.

"We want every dollar the State spends to go towards supporting jobs," Mr Buswell said.

"This is a great acknowledgement of the work done so far and a strong endorsement of the approach we have taken to position WA for the next economic upswing.

"The Opposition are not up to the task of offering leadership in this complex area; instead taking the lazy road of carping from the sidelines on every tough decision we've had to make.

"Today's decision by Moody's to reaffirm our Triple-A credit rating vindicates the Liberal-National Government's approach to managing the State's finances."

 

Announcement from the Opposition:

 

Still no details on Buswell's financial plan

The strength of Western Australia's economy has been confirmed, with the State retaining its triple-A credit rating, Shadow Treasurer Ben Wyatt said today.

"The Barnett Government inherited a strong balance sheet from Labor and this has provided the strong base upon which the State can weather the current economic turbulence," Mr Wyatt said.

"Labor has been demanding that the Treasurer outline his 'corrective measures' that he intends to make to the State's finances."

Moodys has made explicit mention of the Barnett Government's plans to improve the State's finance and debt positions. The ratings agency will also be monitoring the 'tough measures' that the Treasurer has repeatedly foreshadowed.

"The Barnett Government must now detail to all Western Australians what discussion it has had with Moodys to retain the triple-A rating," Mr Wyatt said.

"The result of the tough measures that the Treasurer has referred to, in his discussions with Moodys, are yet to be proved. The FTE ceiling and wages policy have had no impact on the State's record expenditure growth.

"All Western Australians are entitled to know what future corrective measures the Treasurer has outlined to give comfort to the ratings agencies.

"It is clear the Barnett Government intends to make substantial cuts to Government services and rapidly increase household fees and charges.

"At the end of the day it is not the Treasurer who will pay the price for his Government's excessive spending. Western Australians will be footing Buswell's bill for many years to come."

Mr Wyatt said it was curious that the Treasurer had waited until the end of the Parliamentary sitting week to publicly confirm his discussions with Moodys.

"We will continue to seek further clarification and details of the corrective measures suggested by the Barnett Government," he said.

Labor continues to call for an updated financial strategy, which would require the Barnett Government to declare the consequences of their decisions on the budget and impact on WA households.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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