New South Wales is rated triple-A by the two major credit rating agencies: S&P and Moody’s.

NSW is one of only two states with a triple-A credit rating.

Maintaining the State’s triple-A credit rating is the central objective of the Fiscal Responsibility Act, 2012. To support that objective, the Government’s fiscal strategy pursues the legislated targets of holding expense growth below long-term revenue growth, and eliminating unfunded superannuation liabilities by 2030. This will strengthen the balance sheet over time and build a buffer against cyclical shocks and long term fiscal pressures, including the ageing population.

The Act requires annual Budget reporting on performance against objects, targets, and principles; and remedial measures if any of those are not met.

The maintenance of the State’s triple-A credit rating is also a State Priority.

Learn more about credit ratings

A credit rating is a measure of how risky a borrower is (the borrower’s expected willingness and capacity to repay any debt on time). Types of entities may include, but are not limited to, an individual, country, state, city or company.  Ratings vary according to the type of debt instrument (and its terms and conditions), as well as the borrower’s credit profile.

Higher credit ratings may lower the cost of borrowing and assist an entity in accessing financial markets.

For Government entities, the highest possible ratings are Aaa (Moody’s) and AAA (Standard & Poor’s). The lowest are C (Moody’s) and D (Standard & Poor’s).