Standard & Poor's has given a glowing assessment of the ACT economy, but retained the negative outlook linked to federal concerns.
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The ratings agency was impressed with the territory's financial management in the context of the $1 billion Mr Fluffy package and previous federal budget cuts, tipping a growth in gross state product now the freeze in federal hiring had ended.
"The ratings on the ACT reflect our view of Australia's extremely predictable and supportive institutional framework, plus the territory's very strong financial management and economy, and its exceptional liquidity," it said in a report on Friday.
Standard & Poor's downgraded the outlook for the federal government's triple-A rating to "negative" from "stable" on July 7, citing uncertainty following the election and high levels of external and household debt.
A state or territory cannot have a higher credit rating, or a different outlook, than that given to the federal government.
A negative outlook means at least a one-in-three chance of the credit rating being downgraded within 12 to 24 months.
The report said the ACT's "average" budgetary performance and moderate and rising debt burden partly offset the economy's strengths, but expected this performance to strengthen over the next two to three years as Mr Fluffy costs wind down and the decontaminated land is sold.
Standard & Poor's said the Barr government's move to a more rates-based revenue stream was unlikely to significantly raise revenue or improve budget flexibility, but could improve the stability of internal intakes.
Chief Minister Andrew Barr, who has been Treasurer for five years, said the AAA rating was confirmation of the strength of the ACT economy and the strong budgetary performance of the government.
"It's great to receive endorsement from Standard & Poor's for our management of the economy and the efforts of the ACT government to continue our tax reform agenda," he said.
"The ACT economy has weathered the storm from constant attacks from the federal Liberal government.
"Our investment in the ACT economy, through major infrastructure projects such as stage one of light rail, has helped maintain confidence in the territory and allowed us to hold the highest possible credit rating."
