On Aug. 17, 2006, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' ratings on the Australian State of Victoria (Victoria). The outlook is stable. The ratings on the state's central financing authority, Treasury Corp. of Victoria (TCV), which operates with the benefit of a state guarantee, have also been affirmed at 'AAA/A-1+'. The outlook is stable (see separate report on TCV, published on RatingsDirect, on Dec. 20, 2005). The ratings on Victoria, which is located in the southeast of Australia, are supported by the state's strong balance sheet, forecast of adequate financial performance, diversified economy, and Australia's supportive system of government support. Victoria's balance sheet is strong, comparing well against both its regional and international peers. Even after adding in
