Moody's rates NT as stable

Business Asia, March 17, 2000

Moody's Investors Service has labelled as "stable" the credit rating outlook for the Northern Territory, citing ongoing oil and gas projects as a fillip for the economy.

In its annual review, the agency said the stable outlook reflected the strong support of the Commonwealth of Australia for the Territory.

Moody's said the Territory's economic prospects had been enhanced by a number of large ongoing and prospective investments in oil and natural gas projects.

The positive forecast follows a recent report by BIS Shrapnel, which claims that the NT will boast expansion of up to 50 per cent over the next five years -- the highest growth performance across Australian states and territories.

The report, titled "State Industry Prospects 1999-2014", said fast population growth and "rapid development of plentiful mineral and land resources" would fuel the growth.

According to BIS Shrapnel, the NT economy should record an average of 8.3 per cent growth in the next five years and will be boosted by a massive increase in spending on infrastructure projects, such as offshore oil and gas projects and the Alice Springs-to-Darwin railway.

Moody's said changes to the structure of inter-governmental support under the forthcoming national tax reform would boost Commonwealth support over the long term.