The State of Victoria's credit rating is underpinned by Australia's institutional framework and its economy, which, along with asset recycling, continues to support its financial position through strong revenue growth. After updating our forecasts until 2020 we expect Victoria's financial management to maintain its comprehensive liquidity coverage as it delivers its large infrastructure program, which will increase its borrowings for the first time since 2015. The ratings remain under pressure from the sovereign. The negative outlook reflects that on the Commonwealth of Australia (see "Australia Ratings Affirmed At 'AAA/A-1+'; Outlook Remains Negative", published on May 16, 2017), while we view Victoria's SACP as 'aaa'. We do not consider that any state or territory in Australia, including Victoria, can maintain stronger
