Queensland’s AA+ credit rating was at risk at being downgraded according to the state’s treasurer David Janetzki as the state’s debt reaches more than $210 billion.
The treasurer has handed down its Mid-Year Fiscal and Economic Review showing an $887 million surplus for 2026-27 that Labor had initially projected in their last budget will now be a deficit of more than $9 billion.
Another deficit of more than $9 billion is also tipped to be posted for the 2027-28 financial year — replacing the $2 billion surplus Labor had last forecast according to the ABC.
Treasurer Janetzki said, “It is highly likely that we will not just have an outlook downgrade, but that it’s highly likely we will have a ratings downgrade too,” he said.
“I think the treasurer of this state should take our credit rating seriously, because ultimately it determines the credit worthiness of our state and the cost at which we borrow money.
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“My message to Queensland is that we are serious.”
Director of government ratings at S&P, Anthony Walker, said the agency was still digesting what the budget update meant for the state’s credit rating and that the rating may need to be lowered to AA though they had not yet made a definite determination.
The budget update shows that falling coal prices and reduction in coal exports have resulted in a $400 million hole in Queensland’s finances.
