Austria’s AAA Rating Downgraded: Pressure on Fiscal Performance due to COVID-19, Energy Crisis and Structural Changes.

Austria loses top rating as Scope rating agency downgrades it

Austria has faced a downgrade in its long-term credit rating from “AAA” to “AA+” by the European rating agency Scope. The change in outlook from “negative” to “stable” 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. Despite recent structural policy changes and an aging population, Austria’s fiscal performance is facing continued pressure, keeping its structural budget deficit at a high level and preventing a significant reduction in the debt ratio in the coming years.

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