...MELBOURNE (S&P Global Ratings) May 20, 2021--S&P Global Ratings said that today's 2021-2022 budget from the Australian state of Victoria (##/Stable/A-1+) shows the effects of COVID-19. The pandemic has resulted in record deficits in 2021 and rapidly rising debt levels. Victoria's fiscal and economic position is recovering, but the shock is greater than it has been for many of the state's peers. Improving operating margins across the forward estimates will support the state's fiscal position. The Victorian economy has begun recovering, with the near elimination of local transmission of the coronavirus following a prolonged and strict lockdown in 2020. However, this has come at a cost, with the government set to record a record deficit in 2021 and debt stock levels now forecast to be about three times historical levels. We are seeing signs that the state is well placed to begin its fiscal repair in the coming years, and we believe the heightened debt stock levels will be manageable due to...
