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From the West Australian:
WA’s credit rating could be downgraded because of the falling iron ore price and the State Government’s failure to curb spending.
…Standard & Poor’s analyst Anna Hughes said recent events warranted a close watch on WA.
…”We need to weigh up not just changes in GST relativities but the impact of the recent steep fall in the iron ore price.”
Although the Moody’s ratings agency was unable to comment directly yesterday, it pointed to its most recent outlook on WA.
That outlook, which came after the company’s decision to downgrade WA, warned the rating could be trimmed further if there was a lack of Government resolve to control spending or if debt levels climbed further.
Why are they even delaying it?
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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