Restoration of WA's AAA rating a vote of confidence in State's economy [Audio]

11/12/98

Premier Richard Court today hailed the restoration of Western Australia's AAA credit rating by the international agency Standard and Poor's as a major vote of confidence in the State's economy.

Mr Court said the decision was significant given it had come at a time of uncertainty in the Asian region.

"Since the Asian crisis began in July 1997, many of the region's economies have been downgraded - highlighting the importance of the decision to upgrade Western Australia's international credit rating at this time," he said.

WA now has the highest possible ranking with the two international credit ratings agencies - confirming there is strong confidence in the State's economy.

"The upgrading also highlights the importance of a disciplined approach to financial management and has been achieved through the Coalition Government's willingness to control debt and live within its means," the Premier said.

In making its decision, Standard and Poor's said the rating reflected the State public sector's very low debt levels, its sound ongoing financial position, and a strong economy that has shown itself to be resilient to the east Asian economic crisis despite the predominance of the resources sector.

"In fact, the resources sector has driven the State's growth over the past 18 months, in a strong contradiction to alarmist comments early in the crisis which suggested the WA economy would be among the first to suffer," the Premier said.

Mr Court said the upgrading by Standard and Poor's further reinforced the strong confidence in the State's economy which had already been demonstrated by record investment levels over the past year.

Media contact: Bronwyn Hillman 9222 9475