Business & Finance

Austria loses triple-A rating: EU source

Published January 13, 2012 Updated January 13, 2012 07:49pm

"Austria and France are the two countries that are losing their triple-A," the source said, meaning that the four other states with top ratings -- Germany, the Netherlands, Finland and Luxembourg -- retained their stellar standing.

Another European source said Austria's downgrade is worrisome for the country's banking sector, which is already considered to be in a fragile state.

The S&P decisions, which the ratings agency was expected to officially announce later Friday, could also have a negative impact on the eurozone's debt bailout fund, which relies on the credibility of the six top-rated nations.

A downgrade of the European Financial Stability Facility would likely increase its borrowing costs, making it more expensive for the EFSF to raise funds on the markets used to provide bailouts.

Copyright AFP (Agence France-Presse), 2012