The ACT has had its credit rating downgraded, S&P Global has confirmed.

The ACT's credit rating was downgraded from AA+ to AA on Friday.

"We expect the ACT's operating accounts to remain in deficit until fiscal 2027 due to rising health costs," S&P Global said.

"Additionally, higher capital spending will weigh on overall cash deficits, driving the territory's debt above that of all rated Australian states except Victoria.

"We lowered our long-term issuer credit rating on ACT to 'AA' from 'AA+'. At the same time, we affirmed our 'A-1+' short-term issuer credit rating.

"The outlook on the long-term rating is stable."

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The ACT government revealed it had recorded its largest ever budget deficit when it handed down the 2025-26 budget in June this year.

It blamed increased cos

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