Victoria loses its triple-A credit rating after S&P downgrades state over coronavirus budget impact

Victoria has lost its triple-A credit rating due to the “severe economic and fiscal shock” the COVID-19 pandemic has dealt to the state’s budget position.

Ratings firm S&P Global said it took the decision to lower Victoria’s rating to double-A because its economy had been hit harder than other Australian states and territories due to its second wave of coronavirus infections, which triggered a “substantial and prolonged lockdown” in the state.

“In our view, the Victorian government’s path to fiscal repair will be more challenging and prolonged than other states because of the significant increase in debt stock projected over the next few years,” the ratings firm said in a statement.

The firm went on to say the State Government’s “record…