S&P REAFFIRMS AUSTRALIAN CAPITAL TERRITORY'S AAA RATING.

AsiaPulse News, May, 2003

SYDNEY, May 7 Asia Pulse - Standard & Poor's Ratings Services today said that despite the ACT budgeting for a small operating deficit in fiscal 2004, its finances remain strong and are consistent with the territory's AAA rating.

The ACT government is budgeting for an A$8 million (US$4.9 million) operating deficit for fiscal 2004, a deterioration from the operating surplus of $61 million expected for fiscal 2003.

S&P said the strong fiscal 2003 result is expected despite the large, one-off impact of the summer bushfires and the weakness of investment markets.

"We'd typically expect to see a AAA rated government record operating surpluses rather than deficits," S&P associate director Public Finance Ratings, Brendan Flynn, said.

"However, in...