Queensland’s credit rating downgraded for first time since 2009
Posted Fri 11 Sep 2026 at 1:09pmFri 11 Sep 2026 at 1:09pmFri 11 Sep 2026 at 1:09pm, updated Fri 11 Sep 2026 at 1:27pmFri 11 Sep 2026 at 1:27pmFri 11 Sep 2026 at 1:27pm
Queensland’s credit rating has been downgraded for the first time in almost 20 years, putting pressure on the state’s multi-billion-dollar debt and Olympic infrastructure.
S&P Global Ratings today confirmed it had lowered its “long-term issuer credit rating” on Queensland to AA from AA+.
The state has had an AA+ rating since early 2009.
In a statement, S&P Global said the outlook on the long-term for the state remains stable.
“The stable outlook on the long-term rating reflects our view that Queensland’s budgetary performance will remain weak over the next few years as the state ramps up its infrastructure spending, resulting in debt being structurally higher than in the past,” the statement said.
The statement provided an upside and downside scenario for the next few years for Queensland.
“We could lower our long-term rating on Queensland if its financial management weakens,” S&P Global said in reference to the downside scenario.
“Weaker management could drive persistent operating deficits and wider deficits after capital accounts, and substantially higher debt.”
For the upside, the statement said Queensland’s credit rating could be raised if the state “runs sustained operating surpluses and narrower deficits after capital accounts on a continued basis”.
Queensland Treasurer David Janetzki has consistently said a downgrade was likely since coming to government in 2024.
In a statement yesterday, he blamed the potential downgrade on the former Labor government and the impacts from the latest federal budget.
S&P Global Ratings’ research update on the state, published in February this year, said it expected the state to incur operating deficits and large deficits after capital accounts over the next two years, before recovering by fiscal 2028.
“As a result, debt will rise steadily but remain lower than most Australian states,” the credit agency said.
“The negative outlook reflects our view that Queensland’s budgetary performance could weaken during the next two years, resulting in higher debt, largely due to heavy infrastructure spending.”
Speaking on 612 ABC Brisbane before the announcement, Federal Treasurer Jim Chalmers disagreed with Mr Janetzki’s view that Queensland’s budget was under pressure because of the Commonwealth.
He said the federal government has been “piling billions and billions of extra dollars” into the state.
“Every budget around Australia, including certainly the Commonwealth budget, is under pressure for one reason or another,” Mr Chalmers said on Friday morning.
“But the Queensland budget is not under pressure because of the Commonwealth.”
He alluded to the state’s downgraded rating in federal parliament yesterday, where he said the risk of a downgrade was “very troubling”.
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