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Austria loses top rating as Scope rating agency downgrades it

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Apr 27, 2024

The European rating agency Scope has downgraded Austria from its top credit grade. The long-term credit rating has been lowered from “AAA” to “AA+” with a changed outlook from “negative” to “stable.” The agency stated that this downgrade reflects the increasing divergence in Austria’s fiscal indicators compared to highly rated countries, driven by factors such as the Corona pandemic and the energy crisis.

The country’s fiscal performance is facing continued pressure due to recent structural policy changes and an aging population. These challenges are expected to keep Austria’s structural budget deficit at a high level and prevent a significant reduction in the debt ratio in the coming years.

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