Indebted state governments are likely to be the biggest losers from the synchronised housing market correction. RBC Capital Markets warned on Tuesday that there is more than a 50% chance that both NSW and Queensland will lose their AA+ credit ratings before Christmas, owing in part to the collapse in stamp duty revenue. Both states have an AA+ rating, but carry a “negative outlook”. This means there is a strong chance that S&P could cut its credit score to AA, in line with Victoria. Advertisement