On July 26, 2004, Standard & Poor's Ratings Services affirmed its 'AAA/A-1+' ratings on Australia's State of Victoria. The rating action reflects Victoria's: -- Very strong balance sheet. A conservative measure of financial obligations, non-financial public sector net financial liabilities are only 55.5% of operating revenue. Less-stringent measures show an even stronger position: net direct debt of the general government sector is only 6.4% of operating revenue. -- Strong management capacity. The government's commitment to fiscal discipline is evident in its traditionally prudent approach to fiscal budgeting. -- Good financial performance. The state has typically recorded non-financial public sector cash surpluses even after capital spending. Some small deficits are projected over the next few years but this is consistent with
