The S&P decision follows both Fitch and Moody’s affirmation of their triple-A credit ratings last month.
S&P downgraded NSW from a triple-A rating to a AA+ under the previous government in December 2020.
The state’s fiscal position weakened in recent years, fuelled further by the former government’s $27 billion spend in the 9 months leading up to the last election and their legacy of a $7 billion black hole of unfunded programs.
Through the September budget, the Minns Government began the work of budget repair, including through the Comprehensive Expenditure Review (CER) which identified $13 billion in budget improvements.
These funds are being reinvested into essential services to help keep the state’s overall expenses at a manageable level.
S&P noted the financial difficulties the Minns Government inherited, including work to reduce the impact of the Debt Retirement Fund and the Transport Assets Holding Entity on the balance sheets.
The NSW Government maintains that the path back to a modest surplus remains challenging.
Treasurer Daniel Mookhey said:
“The Minns Labor Government is still in the early stages of setting NSW’s finances on a sustainable footing.
“The NSW economy is gaining momentum, but as noted by S&P, there are still significant headwinds to navigate.
“I will be providing the next budget update in our half-yearly review on 14 December.”
