NSW has maintained its Triple-A credit rating after a determination by global ratings agency Fitch.
It follows the Minns Labor Government’s ongoing work to stabilise state debt while absorbing the $11.9 billion GST hit from the Commonwealth Grants Commission.
Treasurer Daniel Mookhey announced in the 2024-25 Budget that gross debt is projected to be $9.3 billion lower under this government by June 2026.
Fitch cites the state’s effective fiscal management and strong and diversified economy as factors supporting its determination.
But Fitch is clear that challenges remain to holding the Triple-A rating, including persistent inflation concerns.
The determination from Fitch follows last month’s determination by Moody’s to maintain the State’s Triple-A credit rating.
The Minns Labor Government continues the work of bringing the state’s debt under control, after the former government delivered the biggest deficits in the state’s history and handed over a record debt.
Treasurer Daniel Mookhey said:
“This is an acknowledgement of the work we’ve done to get the state’s debt under control – and of the work still to do.
“Fitch is clear that we still face economic headwinds including stubbornly high interest rates which keeps pressure on the state’s Triple-A rating.”
Minister for Finance Courtney Houssos said:
“Repairing the state’s finances while delivering targeted cost-of-living relief to families and households across NSW remains the focus of the Minns Labor Government.
“Rebuilding the public services our communities rely on while maintaining fiscal discipline will build a better NSW for all.”
