Concerns have been raised by credit rating agency S&P Global Ratings, with fears Victoria’s credit rating is on the cusp of a downgrade.

It comes as the Herald Sun and The Age report the cost of the Airport Rail Link will blow out by $2 billion if the project is delayed by four years, with fears the Metro Tunnel could go over budget as well.

“There’s going to be some very difficult conversations to have over the next decade,” Anthony Walker, director in the sovereign ratings team at S&P Global Ratings, told Tom Elliott.

Press PLAY to hear whether Victoria’s credit rating could be downgraded + his concerns with state government spending 

The 3AW Mornings host also asked Mr Walker on his thoughts on the federal government not assisting the state government with any more funding for the Suburban Rail Loop project.

“If there’s a $9.6 billion funding gap because the commonwealth won’t step in, there’s going to be increased concerns on that credit rating,” Mr Walker responded.

Elliott thought Mr Walker’s comments were “fascinating albeit somewhat disturbing from a financial point of view”.

“Five years ago, we had a fabulous credit rating and a really good outlook, and all of those lockdowns destroyed our economy, and now we are paying the price,” he said.

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