Foley 'Pays' for AAA Rating (click)

Ratings agency gives SA double-A-plus

21.09.2010

A parliamentary inquiry has heard a third credit ratings agency, Fitch's, does not give South Australia a triple-A rating.

The inquiry heard Standard & Poor's, which has just re-affirmed a triple-A rating for SA, is paid more than $300,000 by the Government for its services.

Another agency, Moody's, is also paid and has given the same rating.

But Under-Treasurer Jim Wright says Fitch's has a different rating and is offering a free service.

That agency rates South Australia as double-A-plus.

Mr Wright told a SA parliamentary inquiry a recommendation by the Sustainable Budget Commission (SBC) to cease paying the other two ratings agencies was rejected.

"The SBC identified the possibility that you might not go ahead and pay them and rely on them on them rating you anyway, but some ratings agencies do - Fitch's, for instance, they rate the state at the moment and we don't pay them a fee," he told the inquiry.

SA Treasurer Kevin Foley said Standard & Poor's and Moody's were the best in the business.