South Australia has maintained its Aa1 credit rating and its stable outlook, according to global ratings’ agency, Moody’s.

In part, Moody’s says South Australia’s credit profile is underpinned by a strong institutional framework, and that state revenues will remain resilient despite a softer national economic outlook, high inflation and higher interest rates.

It also says support from the Commonwealth, through GST revenue and Commonwealth grants, will help our state weather economic turbulence.

Moody’s has noted South Australia’s increasing debt burden, driven by record levels of infrastructure spending, including on the North-South Corridor tunnels and the New Women’s and Children’s Hospital, and has correspondingly changed the baseline credit assessment from aa2 to aa3.

However, this record pipeline of infrastructure work will be a major driver of economic activity in South Australia over the next four years.

South Australia’s economy will also benefit from significant investments in defence and renewable energy projects, including plans to export Hydrogen by 2030.

Moody’s confirmation of its Aa1 credit rating, follows S&P’s decision to maintain South Australia’s AA+ credit rating earlier this month, praising South Australia’s “solid financial management, wealthy economy, in an international context, & strong liquidity.”

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Attributable to Stephen Mullighan

Moody’s Ratings decision to maintain South Australia’s Aa1 stable credit rating, should give South Australians confidence in the Government’s management of the State’s finances.

South Australia is leading the nation with the equal lowest unemployment rate of 3.9 per cent, according to data released by the Australian Bureau of Statistics (ABS) today and has been named the best place in the country to do business by the Business Council of Australia.

With the national economy slowing, this result maintaining our stable credit rating, puts our state in good stead to withstand economic turbulence.