MELBOURNE (Standard & Poor's) May 3, 2005--The budgeted strong capital spending on infrastructure by the State of Victoria will increase the government's net debt, but will not affect the 'AAA' rating on the state, said Standard & Poor's Ratings Services. The government's fiscal profile should remain robust and operating surpluses are still forecast, although they will be slightly lower than previously expected. "There are three reasons why the projected increase in net debt and other financial liabilities does not threaten credit quality," said Standard & Poor's credit analyst Brendan Flynn. "First, the increase comes from a low base. Second, it mainly reflects the strength of the proposed capital program. And third, the increase partly reflects an accounting adjustment rather than
