Ratings agency Moody’s has highlighted the positive benefits to the NSW balance sheet of the landmark $9.26 billion WestConnex transaction.
In an investor services comment issued yesterday Moody’s said the multi-billion dollar result would significantly bolster the state’s finances.
“When combined with the cash injection from the sale of the state’s 58 per cent stake in the Snowy Hydro hydroelectric scheme for $4.2 billion to the Commonwealth government, the state is well positioned to enter the next phase of its record $87.2 billion capital spending program,”
Moody’s stated. The ratings agency said the result would also “add to the state’s existing high degree of financial flexibility”.
Treasurer Dominic Perrottet said the transaction, which saw a 51 per cent stake of Sydney Motorway Corporation transfer to Sydney Transport Partners, would benefit people right across NSW.
“The ratings agency has recognised this will significantly boost the already strong financial position of our great state, and is an endorsement of our asset recycling strategy,” Mr Perrottet said.
“The result not only allows us to cover our remaining costs in the project that we need to, but to invest billions more in schools, hospitals and improved public transport.”
“Never forget, Labor opposed this transaction, so not only would there be no funds to build this critical piece of infrastructure, but if they had their way they would fund it by pushing NSW into a spiral of debt, deficit and ultimately a credit rating under threat”
NSW has a triple-A credit rating with both S&P Global Ratings and Moody’s. Maintaining this rating is a key objective of the Fiscal Responsibility Act introduced by the Government in 2012, with a core commitment being to ensure annual expense growth remains below long-term revenue growth.