Moody’s approves South Australian financial performance
(Australia) Ratings agency Moody’s has given South Australia’s financial performance the thumbs up by upgrading the state’s debt ratings to Aa1 from Aa2.
Moody’s said South Australia’s debt profile had significantly improved over recent years, due in large part to funds from the state’s sale of electricity assets being used to control debt.
The South Australian government’s commitment to maintaining a balanced budget, its control of expenditure, growth in tax revenues and current surplus all contributed to a strong financial performance, Moody’s said.
"The government has refined its medium term strategy in its 2003/04 budget and now expects to generate small surpluses over the next four years, supported by expectations of ongoing revenue growth and controlled spending," the ratings agency said.
The South Australian government’s commitment to maintaining a balanced budget, its control of expenditure, growth in tax revenues and current surplus all contributed to a strong financial performance, Moody’s said.
"The government has refined its medium term strategy in its 2003/04 budget and now expects to generate small surpluses over the next four years, supported by expectations of ongoing revenue growth and controlled spending," the ratings agency said.
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