Queensland's credit rating cut for first time in 17 years
S&P Global downgraded Queensland to AA from AA+, citing higher wages and softer property market.
Queensland's credit rating has been cut to AA, marking the first downgrade since 2009. S&P Global said the state's finances would remain weak over the next two to three years as it runs cash operating deficits while spending heavily on Olympics infrastructure, transport projects and hospital upgrades.
Higher borrowing costs will follow: the better a state's rating, the cheaper its loans. Only Western Australia holds a top-tier AAA rating among Australian states.
New South Wales and South Australia are at AA+. Victoria, Tasmania and the ACT sit at AA alongside Queensland now.
The downgrade adds pressure on the Brisbane Olympics budget, less than six years away.
- AA
- New rating
- 17
- Years since last downgrade
- 2 to 3 years
- Weak finances timeline
- Less than 6 years
- Olympics timeframe
Why it mattersHigher borrowing costs will tighten the state budget for essential services, schools and infrastructure during a critical build-up to the 2032 Olympics.
