MELBOURNE (Standard&Poor's) May 6, 2008--Standard&Poor's Ratings Services said that budget announced today for the State of Victoria is consistent with the state's 'AAA' rating. The 'AAA' rating is the highest assigned by Standard&Poor's, and reflects Victoria's strong balance sheet, strong operating performance, solid economic outlook, and a supportive system of government. The outlook is stable. "The Victorian State Government can easily afford its projected net-debt increases," said credit analyst Brendan Flynn, of the Sovereign&Public Finance Ratings group. "The strength of the government's forecast operating performance and existing low debt enables the state to maintain high capital spending without affecting its current credit rating." Reflecting the projected strength of capital spending, general government
