The decision of S&P Global to upgrade its outlook for New South Wales to Stable and reaffirm its AA+ credit rating is a strong endorsement of the Minns Labor Government’s responsible economic stewardship.
S&P Global credited the Government’s “excellent financial management” for the upgrade and noted the state’s “highly diversified economy” in support of its decision.
For four Budgets, we have made consistent and careful decisions to improve the state’s fiscal position.
- We have delivered the biggest budget turnaround in the state’s history
- Debt is nearly $10 billion lower than the former Liberal National Government had projected
- We have sought out and cut wasteful spending
- The year before Labor was elected, NSW ran a record deficit of $15.3 billion
- The deficit is down to $2.3 billion in 2026-27 and a surplus of $1.1b is forecast next financial year
- In the first 3 years of the Minns Government expenses growth has been kept to just 3.7%, the lowest of any state.
Today’s decision shows why that record matters.
NSW stands alone
We know there is more to do but NSW is the first Australian state in three years to have its credit outlook improved by S&P – a distinction earned through fiscal discipline during a period of global economic uncertainty.
We have restrained spending while protecting essential services.
We have reduced our reliance on debt to fund infrastructure.
We have repaired the Budget, while continuing to invest in housing, schools, hospitals and transport.
And we have done it through successive global economic shocks.
This week global ratings agency Fitch affirmed its Triple-A credit rating for NSW.
The state also holds a Triple-A rating with Moody’s.
Treasurer Daniel Mookhey said:
“This decision confirms NSW is on the right track, and is a credit to the people, businesses and workers who keep this state growing.
“But we know there’s more work to be done.
“Working families are doing it tough and they want to know their Government is taking as much care of the state’s finances as they are with their household budget.
“Our strong balance sheet is not only a platform for growth but also a foundation to support families through this cost-of-living crisis.”
Minister for Finance Courtney Houssos said:
“Investors and businesses are taking note of this Government’s responsible economic management.
“The careful and at times difficult decisions we have made are improving the state’s long-term outlook.
“In an uncertain world, NSW, under Labor, offers something increasingly valuable: stability, discipline and confidence.”
