ANDREW Barr says Standard and Poor’s has reaffirmed the ACT Government’s credit rating as AAA Stable – the highest rating possible.

“S&P also reaffirmed the short term rating as A-1+ – which is also the highest rating possible,” Andrew said.

“S&P stated that it expected the Territory to remain consistent with the AAA rating over the next two years.

“Today’s announcement by S&P is a strong endorsement of the ACT Government’s economic and fiscal management. According to S&P, the rating reflects ‘the Territory’s very strong economy and financial management, strong budgetary flexibility and exceptional liquidity.’

“We consider the ACT’s financial management to be very strong. In our view, the institutional framework promotes a strong management culture and fiscal discipline across Australian jurisdictions. The ACT’s debt and liquidity management, and its management of government-related entities support our view.”

“S&P noted the impact of the Asbestos Eradication Scheme on the budgetary performance, but added that the budget should strengthen over the medium-to-long term as the Scheme progresses and blocks are decontaminated and sold.

“S&P also noted the ongoing improvement in the stability of the ACT’s own-source revenue as a result of tax reform.

“In recent years, the ACT Government has remained committed to supporting our economy and supporting jobs during the Commonwealth’s cuts to employment and spending by continuing to fund and build the infrastructure our city needs and maintaining a prudent and responsible approach to spending and revenue raising.

“I am pleased the ACT Government’s economic and fiscal management has again been endorsed by a major international ratings agency.”