Victoria is recovering from the economic shock caused by the COVID-19 pandemic. Significant fiscal stimulatory initiatives and a large infrastructure pipeline are improving economic growth but weighing on budgetary performance over our forecasts. The state will post large operating and after-capital-account deficits this fiscal year, elevating debt levels. We are affirming our long-term rating on Victoria of 'AA'. The outlook is stable. On Aug. 16, 2021, S&P Global Ratings affirmed its 'AA' long-term foreign currency and local currency ratings and 'A-1+' short-term issuer credit rating on the Australian state of Victoria. The outlook remains stable. The stable outlook incorporates our expectation that Victoria's budgetary performance will remain in large after-capital account deficit and its debt levels will be elevated for
