Victoria already has the lowest credit rating in Australia (AA).
Major ratings agencies — S&P Global, Moody’s, and Fitch — have all warned Victoria that its rapidly rising debt poses a serious risk of another credit‑rating downgrade, which would sharply increase the state’s borrowing costs.
They have specifically highlighted Victoria’s high and growing debt‑to‑revenue ratio, rising interest bills, weak budget discipline, and lack of a credible plan to stabilise debt.
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