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Austria retains highest credit rating

AAA Rating © photocase.com/Chobe

© photocase.com/Chobe

January 10, 2011

S & P Gives Austria AAA

The rating agency Standard & Poor´s (S&P) reaffirmed the triple-A rating for the Republic of Austria. Austria has again been awarded the highest rating for being a “reliable and stable borrower“. The outlook for the Republic of Austria’s debt was described as “stable”. According to the rating agency, the Austrian economy was “resilient“ and the budget consolidation strategy “clearly defined”.

S&P drew attention to the high national debt, but praised the flexible labor market and moderate wage policies in Austria. The rating agency explicitly warns that the AAA rating could come under pressure if Austria watered down its budget consolidation and accepted a renewed increase in its debt.

Austrian Minister of Finance Josef Pröll expressed his pleasure about this clear confirmation of the triple-A rating for Austria: “The hard work has paid off. This is absolute proof of our creditworthiness, and our efforts to consolidate the budget are praised explicitly“, said Minister Pröll. Based on the report of S&P, Austria “was clearly at the top of Europe in terms of sound public finances“. Austria could reach its goal of getting out of the debt trap faster than countries such as the Netherlands, Denmark or France. However, one should not sit back and be complacent, stressed the Minister of Finance. The partially continuing trend towards accelerating expenditure as well as structural weaknesses in administration still pose challenges. Pröll stated that it was his goal to consolidate the state budget on a sustainable basis. A foundation has been laid with the present budget and the budget plan for the period up to 2013, said Minister of Finance Pröll.

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