The free state government warned that borrowing costs would be higher.
Queensland’s credit rating outlook has been downgraded from AA+ Stable to AA+ negatively to S&P Global.
This outlook risks pushing up the costs of borrowing in Sunshine ahead of the Brisbane 2032 Olympics.
That was after the Free National Party (LNP) took office from Labor a few months ago in the October 2024 election.
The liberal national government said the full financial impact of the downgrade was uncertain, but Queensland’s borrowing costs were confirmed to be higher.
They also said the LNP warned Queenslanders in early December about the former government’s “disastrous financial heritage.”
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“The Labour Party’s final budget update reveals the path of debt, deficits and deceptions of $218 billion. After 10 years of lies, debts and deficits, workers will once again take control of the budget. You can’t trust it.”
The LNP government emphasized that S&P Global issued two breaking news prior to the election, warning of a negative outlook.
“In June 2024, S&P released a breaking news titled “Queensland Budget Erosion Rating Headroom.” In September, S&P reported on workers’ 2024-25 budgets, focusing on billions of dollars of one-off spending and “starts of the state’s already big infrastructure pipeline.” .
Janetzki said the LNP will improve budgets with a mild and considered approach.
“Our challenge is clear and we want it. We are bringing a new start for Queensland, including restoring Queensland’s taxpayer money,” he said. Ta.
Negative Credit Rating
In addition to downgrading the state’s credit ratings outlook, S&P Global provided credit ratings for AA+ long-term and A-1+ short-term issuers with Queensland Finance Corporation (QTC). QTC is the state’s central funding agency.
The Outlook revision reflects one created in Queensland, which owns QTC. The ratings were equalized to reflect S&P’s expectations that states almost certainly provide IT support in painful scenarios.
“The negative outlook for QTC reflects that of Queensland. If we downgrade Queensland, we will lower the QTC rating over the next two years. Furthermore, lowering the QTC rating would result in a situation where the status is not correct At events that are unlikely to be weakened or linked,” S&P said.
Worker Responsibilities Recent “Budget Updates”
Shadow Treasurer Shannon Fentiman argued that S&P had changed the outlook for Queensland’s economy with the “exaggerated budget update” of the LNP government.
“When LNP squeezes numbers and tries to score cheaper political points, the outcome comes from Queenslanders paying through higher borrowing costs,” she said.
“When you play a stupid game, you win a stupid prize. This is a big mistake from the LNP.”
Meanwhile, Opposition leader Stephen Miles has continued to advocate for more spending, promoting a petition locking him up in Queensland’s 50-cent public transport.
