❓ Details the costs and regulatory oversight of Western Australia's credit ratings by Moody's and Standard & Poor's, highlighting ASIC's role and the agencies' codes of conduct. The question (d) refers back to the answer in (c).
AnsweredQoN 8006Legislative Assembly
QuestionView source ↗
(d) See (c). Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on http://www.rtlib.com
AnswerView source ↗
Answered
19 June 2012
Response time
34 days
Department of Treasury
(a) As the State's central borrowing authority, the Western Australian Treasury Corporation (WATC) has engaged Moody's Investors' Service and Standard & Poor's Ratings to rate its debt. WATC's debt is guaranteed by the Treasurer on behalf of the State under the
Western Australian Treasury Corporation Act 1986
.For consistency in the assessment of Western Australia's public sector debt, Moody's and Standard & Poor's have rated the State as guarantor, and the debt issued by WATC, for over two decades. The credit rating fees paid by WATC are set out in (b) below. Moody's and Standard & Poor's are the two leading credit rating agencies in the world, and rate the debt of the Commonwealth and all 6 Australian States.
(b) The annual costs for obtaining Western Australia's credit ratings are shown in the following table. Outyear costs are indicative for forecast purposes and are subject to revision as and when prices are made certain.
ANNUAL CREDIT RATING COSTS
2008?09
Actual
$000
2009?10
Actual
$000
2010?11
Actual
$000
2011?12
Actual
$000
2012-13
Budget
$000
2013-14
Estimate
$000
2014-15
Estimate
$000
2015-16
Estimate
$000
TOTAL
450
423
378
399
410
420
431
442
(c) Moody's and Standard & Poor's have Australian Financial Services Licences issued by the Australian Securities and Investments Commission (ASIC). These licences authorise the two agencies to provide general financial advice to wholesale investors by issuing credit ratings. Both of these credit ratings agencies have codes of professional conduct which include processes supporting the quality and integrity of the ratings process, independence and avoidance of conflict of interest, commitments and responsibilities to public investors and debt issuers (including the treatment of confidential information), code of conduct enforcement and disclosure frameworks, and communication with market participants. The rigour of the ASIC regulatory and licensing framework, together with clearly documented codes of professional conduct, provide sufficient assurance of adequate anti?corruption processes and safeguards in the credit ratings process.
(d) See (c).
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
(a) As the State's central borrowing authority, the Western Australian Treasury Corporation (WATC) has engaged Moody's Investors' Service and Standard & Poor's Ratings to rate its debt. WATC's debt is guaranteed by the Treasurer on behalf of the State under the
Western Australian Treasury Corporation Act 1986
.For consistency in the assessment of Western Australia's public sector debt, Moody's and Standard & Poor's have rated the State as guarantor, and the debt issued by WATC, for over two decades. The credit rating fees paid by WATC are set out in (b) below. Moody's and Standard & Poor's are the two leading credit rating agencies in the world, and rate the debt of the Commonwealth and all 6 Australian States.
(b) The annual costs for obtaining Western Australia's credit ratings are shown in the following table. Outyear costs are indicative for forecast purposes and are subject to revision as and when prices are made certain.
ANNUAL CREDIT RATING COSTS
2008?09
Actual
$000
2009?10
Actual
$000
2010?11
Actual
$000
2011?12
Actual
$000
2012-13
Budget
$000
2013-14
Estimate
$000
2014-15
Estimate
$000
2015-16
Estimate
$000
TOTAL
450
423
378
399
410
420
431
442
(c) Moody's and Standard & Poor's have Australian Financial Services Licences issued by the Australian Securities and Investments Commission (ASIC). These licences authorise the two agencies to provide general financial advice to wholesale investors by issuing credit ratings. Both of these credit ratings agencies have codes of professional conduct which include processes supporting the quality and integrity of the ratings process, independence and avoidance of conflict of interest, commitments and responsibilities to public investors and debt issuers (including the treatment of confidential information), code of conduct enforcement and disclosure frameworks, and communication with market participants. The rigour of the ASIC regulatory and licensing framework, together with clearly documented codes of professional conduct, provide sufficient assurance of adequate anti?corruption processes and safeguards in the credit ratings process.
(d) See (c).
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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