On Nov. 27, 2008, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' ratings on the Australian State of Victoria. The outlook is stable. The ratings on the state's central financing authority, Treasury Corporation of Victoria, which operates with the benefit of a state guarantee, have also been affirmed at 'AAA/A-1+'. The ratings on Victoria are supported by the state's strong balance sheet, diversified economy, ongoing fiscal discipline, and strong system support. As with all Australian states, these strengths are offset 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
