Outlook for Austria’s Government Bond Rating Down to Negative
Outlook for Austria’s Government Bond Rating Down to Negative © AFP 2015/ Emmanuel Dunand
07:47 24.10.2015(updated 08:01 24.10.2015) Get short URL
The Moody’s rating agency has lowered Austria’s government bond rating outlook.
MOSCOW (Sputnik) – The Moody’s rating agency has lowered Austria’s government bond rating outlook from stable to negative, affirming the Aaa rating.
“The main driver of Moody’s decision to change the outlook to negative from stable is Moody’s view that Austria’s economic growth is likely to remain low over the medium term, which will pose challenges for a material reduction in Austria’s relatively high government debt burden over the remainder of this decade,” Moody’s said in a Friday statement.
According to the rating agency, Austria’s real GDP (gross domestic product) has “barely grown” since 2012, but there are some signs that economic growth will pick up in the country next year.
Moody’s said that no major macroeconomic imbalances have been observed in Austria.
“The affirmation of the Aaa/P-1 ratings reflects the country’s comparatively large and wealthy economy, which benefits from a sizeable, high-value added industrial base,” the rating agency explained.
Moody’s warned, however, that the Aaa government bond rating could be downgraded in the coming years if Austria’s economic growth does not pick up.