Pimco cautious on Australia semi-govmt debt, issues mount about states fiscal well being

I posted on the transfer from S&P rankings in the midst of this week:

• S&P rankings revise Australian state Queensland score outlook to destructive

And yeah, there may be by no means just one cockroach, is there?

Bloomberg have the report (gated ) right this moment, in short:

• Pimco and Yarra Capital are cautious of Australian semi-government bonds as a consequence of fiscal issues.
• Queensland’s credit score outlook was reduce to destructive, following related strikes for 3 different states, together with NSW, as a consequence of fiscal dangers.
• Yarra’s Jessica Ren prefers sovereign bonds and gained’t enhance state bond holdings till governments present stronger fiscal self-discipline.
• Rising state spending on subsidies and transport fares might result in extra destructive outlook revisions within the subsequent yr.
• State debt is projected to triple to A$850 billion by fiscal 2028 as bills outpace tax income (S&P).

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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