Queensland Treasury Corporation claimed the limelight last week. QTC sold an A$3.25 billion new 2019 benchmark bond issue. The QTC bond came a day after the release of the state budget and the announcement of QTC's issuance program for 2009-10. Out of all the states it has the largest funding task, needing to raise A$22.5 billion over the year.A$11.5 billion will be new debt and A$12.4 billion will be issued in the form of Australian dollar denominated bonds, of which last week's issue was the first instalment. In light of the funding challenge, and in recognition of its lost triple-A credit rating, the Queensland Treasurer announced that he would be seeking a Commonwealth government guarantee for Queensland's new bond issues, as well as existing issues. Following the Queensland government's release of its 2009-10 budget, Moody's Investors Service observed that the state is facing significant budgetary challenges as revenues slow while spending remains at high levels. Despite having lowered the state rating to 'Aa1' from 'Aaa' earlier this year, Moody's intends to conduct an in-depth analysis of the budget and its medium term impact on the state's financial and debt profile, as part of its ongoing monitoring activities. S&P took a more sanguine view and said that the budget was consistent with the 'AA+/Stable/A-1+' ratings assigned to the state and even talked about the possibility of a return to a 'AAA' rating. S&P said such a change would require greater clarity on the timing and proceeds of asset sales and confidence that the state will deliver a structural improvement in its operating position.