(Repeabt for additional subscribers)
March 21 (The following statement was released by the rating agency)
Fitch Ratings has affirmed the State of New South Wales' Long- and Short-Term Local and Foreign
Currency ratings at 'AAA' and 'F1+' respectively. The Outlook is Stable. At the same time, Fitch
all other ratings of New South Wales at 'AAA' as listed below.
Fitch has simultaneously withdrawn the ratings they are no longer considered by
Fitch to be relevant to the agency's coverage. Accordingly, Fitch will no longer
provide ratings or analytical coverage for New South Wales.
Key Rating Drivers
The ratings reflect the state's strong institutional framework as manifested in
large, tied and untied grant payments by the Commonwealth of Australia. The
ratings also consider the state's stable and diversified economy as well as its
forecasted improving operating margin to 15.88% for FY16 from 9.04% for FY13.
They further take into account the state's strong access to capital markets,
robust liquidity position, as well as its increasing debt burden to AUD39.7bn
for FY16 from AUD31.2bn for FY13, a growing capital expenditure programme and
large unfunded superannuation liabilities. The ratings also include potential
risks from New South Wales Treasury Corporation whose liabilities are guaranteed
by the state.
State of New South Wales:
Long-Term Foreign Currency Rating affirmed at 'AAA'; Outlook Stable; withdrawn
Long-Term Local Currency Rating affirmed at 'AAA', Outlook Stable; withdrawn
Short-Term Foreign Currency Rating affirmed at 'F1+'; withdrawn
Senior unsecured foreign currency notes affirmed at 'AAA'; withdrawn
Government-guaranteed securities affirmed at 'AAA'; withdrawn