WA loses Aaa rating

By Elizabeth Redman

Moody's downgraded the state's issuer and debt ratings to Aa1 from Aaa and changed the outlook to stable from negative, blaming the state's ongoing deficit position, the deterioration in its debt metrics and a growing risk this trend may not be reversed soon. "The challenges related to narrowing the budget gaps include greater volatility in the state's revenue base, reflecting its increasing reliance on royalty income, expenditure pressures related to the rapid expansion in the state's economy and population, and a weak policy response to the deteriorating financial and debt position," Moody's said.

Read more here: Business Spectator

    

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