We expect the COVID-19 pandemic and associated government response to place significant pressure on the State of Victoria's fiscal metrics during 2020 and 2021 before they improve in 2022. We forecast Victoria will incur large operating deficits and higher-than-budgeted after-capital deficits, resulting in a substantial rise in debt levels. We are affirming our 'AAA/A-1+' long- and short-term ratings on Victoria. The negative outlook reflects our view that Victoria's fiscal repair could be delayed and weaken its financial position compared with our forecasts. On May 25, 2020, S&P Global Ratings affirmed its 'AAA/A-1+' ratings on the Australian state of Victoria. The outlook is negative. The negative outlook reflects our view that Victoria's creditworthiness could deteriorate to a level no longer consistent
