The ratings on the State of Victoria reflect our view of Australia's extremely predictable and supportive institutional framework, plus the state's very strong financial management and economy, and its exceptional liquidity. As a result, we are affirming our 'AAA/A-1+' long- and short-term ratings on the state. The negative outlook reflects that on the Commonwealth of Australia and represents at least a one-in-three chance of a downgrade within the next 12-24 months. A lowering of the long-term rating on the sovereign would result in the same action on Victoria because we consider the state is unlikely to survive a stress scenario better than the Australian sovereign. On Aug. 24, 2016, S&P Global Ratings affirmed its 'AAA' long- and 'A-1+' short-term ratings
