Overview
- S&P Global cut Queensland's long-term issuer credit rating from AA+ to AA, a move confirmed on Friday that ends the state's AA+ standing held since 2009.
- The agency said the downgrade reflects an expectation that cash operating deficits will persist while the state ramps up transport, energy, hospital and 2032 Olympic projects.
- Queensland's own budget projections show total debt rising to about $216.47 billion by 2029–30 and interest costs growing toward roughly $11 billion that year, which S&P says will keep borrowing needs high.
- Federal Treasurer Jim Chalmers and Queensland Treasurer David Janetzki traded public blame after early reports of the downgrade, with the state pointing to falling stamp duty and Canberra’s budget changes and the federal government disputing that claim.
- S&P warned it could lower the rating further if financial management weakens and pledged it could restore the notch only if Queensland produces sustained operating surpluses and much narrower deficits.