Queensland’s credit rating has been downgraded, just two days after the LNP government delivered its controversial budget.

One of Australia’s top credit agencies has dropped the rating from double-A plus to double-A.

Camille McLachlan reports.


Fitch Ratings says the downgrade is due to a deterioration of Queensland’s fiscal position and debt patterns over the past four years.

And it warns the rating may drop further if the state can’t improve its position.

Despite the credit drop occurring just two days after the first Liberal budget, the Treasurer still points the finger at the former Bligh government.

Tim Nicholls, Qld Treasurer: “This decision shows Labor’s appalling financial legacy continues to haunt Queensland.”

Mr Nicholls says the downgrade reinforces the need for the LNP’s recent cuts.

The former Federal Treasurer, Peter Costello, who did an audit of the state’s finances agrees.

Peter Costello, Former Federal Treasurer: “Newman and Nicholls want to turn around this state. And they have put this state back on a path whereby first of all it will stop the position getting worse.”

In parliament today the Premier continued to defend axing 14,000 jobs, saying the workers weren’t sacked.

Campbell Newman, Qld Premier: “Despite all the hype and hysteria, not one permanent employee has been sacked as a result of the budget process.”

And the budget could claim another scalp – the LNP has suggested mining magnate Clive Palmer should leave the party, following this comment yesterday.

Clive Palmer, mining magnate: “Campbell Newman won’t last till the end of the year.”

Camille McLachlan, QUT News.