Bulletin: Australian State Of Victoria's 2017 Fiscal Budget Forecasts Strong Surpluses; Ratings Unaffected

MELBOURNE (Standard&Poor's) April 27, 2016--Standard&Poor's Ratings Services said today that its issuer credit ratings on the Australian State of Victoria (AAA/Stable/A-1+) are not affected by the state's budget for fiscal year ending June 30, 2017, announced today. The 2016-2017 budget forecasts a pickup in economic activity and employment supporting government revenues through a strongly performing property market and swelling payroll taxes. Further, the government is predicting growth in goods and services tax (GST) receipts. In addition, the state's cash position is benefiting from the recent High Court ruling in the state's favor in its dispute with the Tatts Group, and from the Commonwealth's decision to allow the state to retain the Commonwealth's funding for the cancelled

...MELBOURNE (Standard & Poor's) April 27, 2016--Standard & Poor's Ratings Services said today that its issuer credit ratings on the Australian State of Victoria (###/Stable/A-1+) are not affected by the state's budget for fiscal year ending June 30, 2017, announced today. The 2016-2017 budget forecasts a pickup in economic activity and employment supporting government revenues through a strongly performing property market and swelling payroll taxes. Further, the government is predicting growth in goods and services tax (GST) receipts. In addition, the state's cash position is benefiting from the recent High Court ruling in the state's favor in its dispute with the Tatts Group, and from the Commonwealth's decision to allow the state to retain the Commonwealth's funding for the cancelled East-West Link project. This funding will be used for future infrastructure projects. We expect Victoria's budgetary performance to remain strong at the nonfinancial public sector level. Supported by growing...

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