Rating agency Scope deprives Austria of its top rating

The European Rating agency Scope hat Austria withdrawn the top grade. The long-term credit rating will be lowered to “AA+” from “AAA,” the agency said on Friday. The outlook will be changed to “stable” from previously “negative”.

The downgrade of the rating reflects the increasing divergence of the country’s fiscal indicators compared to those of other highly rated countries Corona-Pandemics and the Energy crisis wider.

The country’s fiscal performance is under continued pressure, particularly due to recent structural policy changes and the aging population.

Why Austria is being downgraded in the scope rating

These challenges are likely to be that Structural budget deficit in Austria keep it at a high level and prevent a significant reduction in the debt ratio in the coming years.

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