Victoria continues to sustain a strong budgetary performance We are affirming the ratings on Victoria at 'AAA/A-1+' The outlook is stable On Sept. 1, 2009, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' issuer credit ratings on the Australian State of Victoria, and on the state's central financing authority, the Treasury Corporation of Victoria. The ratings reflect the state's strong balance sheet, diversified economy, ongoing fiscal discipline, and strong system support. These strengths are offset, as with all Australian states, by an institutional framework that contains a degree of vertical fiscal imbalance. Victoria's balance sheet is strong. This provides the state with the flexibility to increase debt without jeopardizing its rating. While Victoria's current policy favors partial debt-funding of its
