Strong institutional framework Very strong management and ongoing fiscal discipline Strong and diversified economy Strong operating position Like all Australian states, a degree of structural imbalance between revenue powers and expenditure responsibilities The ratings on Victoria are supported by our opinion of the strong institutional framework benefiting state governments in Australia, Victoria's very capable and conservative management, the state's resilient and diversified economy, and its robust operating position. These strengths are offset--as with all Australian states--by an institutional framework that features some structural imbalance between revenue powers and expenditure responsibilities. The short-term rating on Victoria is 'A-1+'. At June 30, 2010, Victoria's short-term liabilities of A$5.2 billion were predominantly offset by liquid assets of A$5.1 billion. Although we assess Victoria's
