Pimco cautious on Australia semi-govmt debt, concerns mount about states fiscal health

I posted on the move from S&P ratings in the middle of this week:

• S&P ratings revise Australian state Queensland rating outlook to negative

And yeah, there is never only one cockroach, is there?

Bloomberg have the report (gated ) today, in brief:

• Pimco and Yarra Capital are wary of Australian semi-government bonds due to fiscal concerns.
• Queensland’s credit outlook was cut to negative, following similar moves for three other states, including NSW, due to fiscal risks.
• Yarra’s Jessica Ren prefers sovereign bonds and won’t increase state bond holdings until governments show stronger fiscal discipline.
• Rising state spending on subsidies and transport fares may lead to more negative outlook revisions in the next year.
• State debt is projected to triple to A$850 billion by fiscal 2028 as expenses outpace tax revenue (S&P).