...July 7, 2020 MELBOURNE (S&P Global Ratings) July 8, 2020--S&P Global Ratings today said Victoria's return to lockdown will put pressure on the state's economic recovery and fiscal metrics. The Australian state on July 7 announced a six-week lockdown for Melbourne residents in response to a spike in COVID-19 cases. This risk is underscored and captured in the negative outlook that S&P Global Ratings assigned on the state's rating in May 2020. The original restrictions were progressively implemented from March, then gradually lifted through June, when new cases slowed. The new restrictions, along with border closures with other states, will hurt economic activity and delay the state's recovery relative to other states. We expect weaker revenues, including payroll taxes, stamp duties, and goods and services taxes, and increased support and health expenditures. The negative outlook on our rating on the state reflects that Victoria's fiscal repair could be delayed, weakening its financial position...
