Moody's has lifted the outlook on Western Australia's Aa2 credit rating from stable to positive, acknowledging the government's "strong fiscal resolve" and evidence of revenue recovery including recent GST reform.
It is the first improvement to Moody's rating since the agency downgraded the state's AAA rating under the previous Barnett government in 2014.
Treasurer Ben Wyatt said it was a strong endorsement of Labor's responsible approach to economic and financial management.
"Moody's announcement acknowledges the McGowan government's disciplined approach to spending, and signals the state's credit rating is moving in the right direction," he said on Friday.
It follows a decision in October by S&P Global Ratings to improve the outlook on its AA+ rating for the state from negative to stable.
