Updated
Updated · Bloomberg · Jun 6
Morningstar DBRS Cuts Austria to AA High From AAA, Ending Decades-Long Top-Rating Run
Updated
Updated · Bloomberg · Jun 6

Morningstar DBRS Cuts Austria to AA High From AAA, Ending Decades-Long Top-Rating Run

2 articles · Updated · Bloomberg · Jun 6

Summary

  • Austria lost its last top-tier sovereign credit rating after Morningstar DBRS downgraded the country to AA (high) from AAA in an update published late Friday.
  • Persistently high budget deficits and deteriorating debt metrics drove the cut, which Morningstar DBRS said reflects weakening public-finance strength.
  • The downgrade ends a decades-long stretch in which Austria ranked among Europe’s safest sovereign borrowers.
  • Morningstar DBRS assigned a stable outlook, signaling no immediate expectation of another rating move despite the weaker standing.

Insights

With its AAA rating gone, can Austria's seven-year fiscal plan prevent a further economic slide?
Are souring real estate loans pushing Austria's banking system toward a hidden crisis?