Article Tools

Moody’s Downgrades Long-Term Credit Rating of Austria

Published: June 27, 2016; 17:26 · (FriedlNews)

Moody’s has downgraded the long-term credit rating of Austria, from "Aaa” to Aa1. In January 2012 rating agency Standard & Poors had reduced Austria’s rating from AAA to AA+, whereas in February 2015, Fitch did the same.

Moody’s Downgraded Long-Term Credit Rating of Austria / Picture: © Wikipedia

The outlook was always left unchanged.

What determined the latest rating change by Moody’s was the weak long-term growth expectations.

In view of the poor growth rate it would be difficult to reduce the high state debt considerably and on a permanent basis.

Moody’s estimates Austria’s GDP growth rate at 1.3 percent/year on average until 2020.

While in the short term, higher growth rates are possible, as of 2019 it will fall to 1.1 percent per year, unless the state implements additional structural economic reforms.

Fast News Search
Read More