S&P lowers New South Wales view to negative

S&P said it affirmed the AAA long-term and A-1+ short-term ratings on the Australian state of New South Wales.

The outlook was revised to negative from stable.

The outlook revision reflects a similar action on the Commonwealth of Australia, the agency said.

S&P said it caps the long-term rating and the outlook on New South Wales at the level of the long-term rating on the Australia because the agency said it does not consider that New South Wales meets the conditions for rating a local or regional government higher than the sovereign.

The ratings reflect the extremely predictable and supportive institutional framework, underpinning intergovernmental relations in Australia, the agency said.

The ratings also consider New South Wales’ wealthy and diversified economy, S&P said, and the state's exceptional liquidity.

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