Fitch affirms Austria's AA+ rating with stable outlook

By Ovunc Kutlu

ISTANBUL (AA) - Fitch Ratings said Friday it affirmed Austria's long-term foreign currency issuer default rating at AA+ with a stable outlook.

"Austria's rating supported by a diversified and wealthy economy, the reserve currency status of the euro, strong political and social institutions, and sound external finances," it said in a statement.

These are, however, balanced against Austria's high government debt, although its refinancing risks are mitigated by long maturities and low financing costs, it added.

Fitch said it anticipates that the Austrian government would meet its revised general government deficit target of 2.9% of GDP this year.

The general government debt is expected to fall to 76.6% of GDP at the end of 2024, down from 77.6% at the end of last year, and decline gradually in the medium term.

After contracting 0.8% in 2023, Austria's economy is estimated to recover gradually by only 0.4% this year, according to the rating agency.