SP Raises Outlook On Austria On Debt-Focused Financial Plan

30 Jan 2013

Standard & Poor's Ratings Services raised its outlook on Austria to stable from negative, saying it expects the country's economy will cope well with negative impacts from the European sovereign-debt crisis.

S&P also affirmed the country's double-A-plus rating, which is one notch below a top-grade triple-A rating.

The rating firm added that it expects Austria's government to follow its stricter consolidation path and reforms as outlined in its financial plans, which place a priority on reducing financial deficits and debts. S&P also factored in its expectation that the banking industry will increase capital from current levels, which it sees as weak.

S&P said Austria's rating is supported by the country's stable government and predictable economic policies, as well as its wealthy, diversified and competitive economy.

The rating firm added that the likelihood of an upgrade of Austria is "low in the next few years."

Source: http://online.wsj.com/article/BT-CO-20130129-703722.html