The European rating agency Scope has confirmed Austria’s rating of “AA+”. This means that Austria continues to hold the second-best rating, the Ministry of Finance announced on Saturday. Finance Minister Magnus Brunner (ÖVP) viewed the “very good rating as a sign of the high trust of financial markets in the Austrian location.” Scope had revoked Austria’s top rating at the end of April, lowering its long-term credit rating from “AAA” to “AA+”.

Austria benefits primarily from a competitive and diversified economic structure as well as a “strong external economic position,” Scope explained. The banking sector remains “strong.” Additionally, Austria has a “favorable debt profile” with an exceptionally long average maturity and low, albeit rising, interest rates.

In contrast, there is a high debt level compared to other countries with high ratings, along with budget pressure due to rising pension and healthcare costs, and an aging society, which also diminishes growth prospects if structural reforms do not occur. Another challenge mentioned is “a certain vulnerability to geopolitical risks” due to dependence on Russian natural gas imports. The agency expects real GDP growth of -0.4 percent in 2024 and 1.1 percent in 2025.

The Ministry of Finance points out that the rating agency Standard & Poor’s recently upgraded the outlook for Austria from stable to positive. Fitch also confirmed the second-best rating; the rating agency Morningstar DBRS even granted a triple-A rating.

“Despite global challenges, the agencies emphasize the resilience of the Austrian economy, solid debt sustainability, and high per capita GDP,” Brunner stated in the announcement. However, this does not mean that Austria should not make reforms. “Rather, the focus must be on competitiveness: eliminating the most pointless regulations and highlighting new opportunities,” Brunner said. “To keep Austria and Europe competitive, we should not burden ourselves with new regulations, but rather make the system more efficient.”