Australian States at Risk of Further Credit Rating Downgrade Due to Overspending

Several Australian states have had their credit ratings downgraded, meaning they must rein in spending or face higher borrowing costs.
Australian States at Risk of Further Credit Rating Downgrade Due to Overspending
Photo shows Standard & Poor's headquarters in the financial district of New York on Aug. 6, 2011. STAN HONDA/AFP/GettyImages
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Standard & Poors Global, one of the three leading credit ratings agencies, has warned Australian states that they could face further credit downgrades unless they cut costs while questioning whether their governments had “strong financial management on a global scale.”

As a result, taxpayers may be burdened with additional taxes or other charges to cover growing debt costs.

Rex Widerstrom
Rex Widerstrom
Author
Rex Widerstrom is a New Zealand-based reporter with over 40 years of experience in media, including radio and print. He is currently a presenter for Hutt Radio.