South Australia has maintained its AA+ credit rating and stable outlook, following the release of the 2024-25 Budget, according to Global credit rating agency, S&P Global (S&P).

S&P has praised South Australia’s “solid financial management, wealthy economy, in an international context, & strong liquidity”, when deciding to maintain the solid rating.

It says the local economy has good growth momentum, highlighting the opportunities that will arise from major defence investment over the next few decades, including the delivery of six Hunter Class frigates and five SSN-AUKUS nuclear-powered submarines.

While debt is rising as the state delivers key projects including the North-South Corridor and the New Women’s and Children’s Hospital, S&P says it will remain midrange compared with other states.

It forecasts that the Malinauskas Government will maintain operating surpluses across the forward estimates, following the budget’s return to surplus in 2022-23.

After being placed on ‘negative watch’ under the previous Liberal Government, the Malinauskas Government managed to return our credit rating outlook to ‘stable’ after its first two budgets.

This result solidifies the view that the Malinauskas Government’s management of the state’s finances remains robust.

S&P’s decision follows Fitch also maintaining South Australia’s credit rating at AA+ Outlook stable after the 2024-25 Budget.

Quotes

Attributable to Stephen Mullighan

S&P’s glowing report card and the maintenance of our state’s AA+ credit rating, should give South Australians confidence in the Government’s management of the state’s finances.

South Australia is the lowest taxing state in the mainland and according to the Business Council of Australia the best place in the nation to do business.

Our state also topped the leaderboard for economic performance for the third quarter in a row in Commsec’s State of the States report.