Queensland credit rating drops

Queensland's credit rating has been downgraded for the first time since 2009, according to S&P Global Ratings. The state's long-term issuer credit rating was lowered from AA+ to AA. The previous rating had been in place since early 2009. S&P Global cited the state's weak budgetary performance and increased infrastructure spending as the reasons for the downgrade.

The agency expects Queensland to incur operating deficits and large deficits after capital accounts over the next two years, leading to a steady rise in debt. However, the outlook on the long-term rating remains stable. Queensland Treasurer David Janetzki had consistently anticipated a downgrade since taking office in 2024. He blamed the downgrade on the previous Labor government and the latest federal budget.

Meanwhile, Federal Treasurer Jim Chalmers disagreed, stating that the Commonwealth's budget pressures were not unique to Queensland.