(1 October 2004 – Australia) Ratings agency Standard & Poor’s has upgraded South Australia’s long term local and foreign currency ratings to AAA.S&P said the rating, which is the highest it awards, recognised the improvement in government finances to a “position of strength”.
According to S&P, the state has recovered from problems encountered as a result of privatisations in the 1990s with state government coffers now showing a surplus.
The South Australian economy, which has not grown as quickly as the rest of the country, has improved over recent years but remains vulnerable to shocks such as the Mitsubishi plant closing down, S&P said.
It said South Australian public finances needed to be stronger than its AAA rated peers.