Fitch keeps Austria's AA+ credit rating and ensures stable outlook
Blümel sees his crisis strategy confirmed.
“According to Standard & Poors, the rating agency Fitch leaves our credit rating at AA+ for the second time within this past year of crisis. Another recognised international institution has therefore confirmed our crisis strategy. Fitch is confident that our growth will return to pre-crisis levels in the long term. The reason for this is our budget discipline in the past, and it’s also because Austria was well positioned before the crisis," says Finance Minister Gernot Blümel.
With an average term to maturity of 11 years, low capital costs and high financial flexibility, Fitch views Austria’s debt structure very positively. According to Fitch, the fact that Austria ran a surplus in 2018 and 2019 and has provided tax relief for the first income bracket by reducing income tax from 25% to 20% has helped cushion the impact of the pandemic. This measure provided relief to low-income households in particular.
“This shows once again that responsible management in good times is necessary to provide a safety net for bad economic times," concluded Finance Minister Gernot Blümel.