Moody's has downgraded Western Australia
- To AA2 from AA1
- Changed outlook from negative to stable
Cites:
- ongoing deterioration in Western Australia's financial and debt metrics
- Increasing risk that the state's debt burden will be higher than indicated
- Drop in the price of iron ore and the sluggish performance in state taxes have led to declines in revenue
- Absent corresponding expenditure measures, budget deficits are widening significantly
- Western Australia's reliance on volatile royalty income
- Impact of falling iron ore and oil prices on its budget outcomes
None of those will be a surprise.
WA is a great place. If you want a beach all to yourself, head over there.