Why Invest in TCorp Bonds?

TCorp bonds are an attractive opportunity for investors seeking a stable, income focused investment backed by the strength and stability of the state of New South Wales.

TCorp's 2017/18 Annual Borrowing Programme

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Strong Credit Ratings for New South Wales

 
Long Term Australian Currency Long Term Foreign Currency Short Term
Standard & Poor's AAA (neg) AAA (neg) A-1+
Moody's Aaa (stable) Aaa (stable) Prime-1

Ratings Agency Commentary

“The ratings on NSW reflect our view of Australia’s extremely predictable and supportive institutional framework, as well as the state’s very strong financial management and economy, and its exceptional liquidity.”

“The negative outlook reflects that on the Commonwealth of Australia and represents at least a one-in-three chance of a downgrade within the next 12-24 months.”

“We view NSW’s stand alone credit profile as  ‘aaa’.”

Standard & Poor's, September 2016

“New South Wales' credit quality reflects its diverse economic base, considerable budget flexibility, and secure and predictable grants from the Commonwealth.  The ratings also take into account the State’s progress in significantly narrowing its fiscal deficits, following many years of larger recurring deficits.”

Moody's, December 2015

Sound Budget Position

New South Wales has a diversified economy and a track record of keeping expense growth below revenue growth. The State has a strong history of infrastructure renewal through the recycling of assets.

The below chart shows New South Wales' strong budget result, with surpluses forecast across forward projections.

Liquidity

New South Wales’ bonds qualify as Level 1 High Quality Liquid Assets (the highest quality rating) as required under APRA’s liquidity rules for banking institutions.  In addition, New South Wales’ bonds are eligible collateral for repurchase agreements with the RBA. In secondary markets, liquidity in benchmark bond lines is supported by TCorp’s 14 panel members. Each panel member reports turnover on an annual basis.