ABC Listen: Tasmania’s credit rating has been downgraded, economist Saul Eslake says it’s a ‘vote of no confidence’

Credit rating agency Moody’s has downgraded Tasmania’s rating from AA2 to AA3.

The agency says it’s driven by a sharp rise in the state’s debt burden and growing interest costs.

Independent economist Saul Eslake explains to Tasmania Mornings presenter Leon Compton what it actually means for the state, such as the impact on interest rates.

“It’s a vote of no confidence on the part of one of the world’s two large credit rating agencies in the government’s fiscal performance and strategy,” he says.