S&P AFFIRMS CREDIT RATINGS ON WESTERN AUSTRALIA AT AAA & A1-PLUS.

AsiaPulse News, July, 2003

SYDNEY, July 17 Asia Pulse - Standard & Poor's Ratings Services has affirmed the long-term and short-term credit ratings on the State of Western Australia at AAA and A1-plus, with the outlook still on stable.

The AAA and A1-plus ratings are the highest rating assigned by S&P.

"The government's commitment to keeping net debt below 47 per cent of operating revenue continues to be a key barometer of its commitment to fiscal discipline," said credit analyst Brendan Flynn, associate director, Public Finance Ratings.

He said the debt limit was important because S&P believed that the government's fiscal projections, which show net debt falling after 2005, were too optimistic.

"The projections assume that no new spending projects will be announced...