Source: The Wall Street Journal
Ratings Firm Also Lowers Ukraine Deeper Into Junk
Fitch Ratings stripped Austria of its pristine triple-A credit rating, saying government debt will reach a higher peak than previously thought, while also lowering its ratings on Ukraine.
The ratings firm, which lowered Austria’s ratings by one notch to double-A-plus, said the general government debt ratio is expected to peak around 89% of gross domestic product this year, higher than all sovereigns in the triple-A category, except for the U.S. and in line with the ratio in the U.K.
The cut bring Fitch’s ratings in line with those from Standard & Poor’s Ratings Services.
Fitch said Austria’s debt dynamics have deteriorated significantly in a short time, pointing to the impact of bank restructuring on public finances. It added the progress with the restructuring of medium-size banks that fell into serious distress during the economic downturn has been slow. Den Rest des Beitrags lesen »