Fitch affirms Austria at AAA

Strong fundamentals underpin Austria, Fitch Ratings today said when reaffirming its long-term foreign and local currency Issuer Default Ratings (IDRs) at AAA.

The outlooks on both ratings are Stable. The ratings agency has simultaneously affirmed Austria’s Country Ceiling at AAA and its Short-term foreign currency IDR at F1+.

In a statement, Fitch said: “Austria’s AAA rating is underpinned by its developed, flexible economy, strong domestic institutions and a long track record of stability-oriented economic policy. The solid economic fundamentals are reflected in a fast recovery from the 2008-09 recession, low unemployment and a relatively favourable fiscal position within the Eurozone.”

Gergely Kiss, director in Fitch’s Sovereign group said: “Notwithstanding the strong fundamentals, the exposure of Austrian banks to Emerging Europe, including large volumes to weaker members, is significant, but currently is not a material risk to Austria’s AAA status.”

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