VIENNA: The international ratings agency Fitch maintained Austria's triple-A credit rating with a stable outlook on Tuesday, citing a strong economy and a history of sound economic policy. It was good news for Austria, which lost its prized AAA-rating from Standard and Poor's in January and was threatened by a downgrade from Moody's in February.
Fitch justified its decision by highlighting Austria's "developed, flexible economy, strong domestic institutions and a long track record of stability-oriented economic policy."
Fitch also noted that Austria has the EU's lowest unemployment rate.
"The exposure of Austrian banks to emerging Europe, including large volumes to weaker members, is significant, but currently is not a material risk to Austria's 'AAA' status," Gergely Kiss, director of Fitch's sovereign group, added in a statement.
Moody's had cited the banks' exposure in eastern Europe when it put Vienna on negative outlook in February, although it maintained the country's triple-A rating.
Before that, S&P made waves when it lowered Austria's rating to AA+ in January amid a series of other downgrades.
Finance Minister Maria Fekter welcomed Fitch's announcement on Tuesday, arguing that newly passed austerity measures, including a tax deal with Switzerland signed on Friday, had played a major role in the decision. Without its new 28 billion-euro ($36.8-billion) austerity package -- passed last month and aimed at balancing the budget by 2016 -- Fitch might have chosen to downgrade Austria, Fekter said.
The latest rating announcement could now have a positive effect on the two other main international agencies, she added. "I am certain that when the next evaluation comes from Standard and Poor's, they will recognise that we have triple-A status," Fekter said.
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