Qld 'very strong' despite floods: ratings agency

April 4, 2011

Credit ratings agency Standard and Poor's has singled out Queensland's 'excellent financial management' and 'very strong and diversified economy' in its latest assessment of the state's finances.

In its first official analysis following the floods and cyclones that hit earlier this year, Treasurer Andrew Fraser says Standard and Poor's reaffirms Queensland's AA+ credit rating.

"This report vindicates our focus on making the tough decisions, investing in infrastructure and creating Queensland jobs," Fraser says.

"Standard and Poor's is the independent umpire and this report supports the steps the government has taken to build an economic recovery and strengthen the state's finances,” he says.

"The Government has worked hard to stabilise and strengthen our economy following the twin blows of the global financial crisis and now the natural disasters, and the work is not over yet."

Fraser says Standard and Poor's agree with the Government's assessment that economic growth would slow in the short term.

"The floods and cyclone will see growth slow this financial year, but the reconstruction effort will boost the economy in the second half of this year," he says.