The European rating agency Scope has downgraded Austria from its top credit grade of “AAA” to “AA+”, the agency announced on Friday. This downgrade is due to the country’s fiscal indicators diverging from those of other highly rated countries, mainly due to the effects of the Coronavirus pandemic and the energy crisis. Despite recent structural policy changes and an aging population, Austria’s fiscal performance is under pressure, resulting in a high structural budget deficit that will prevent a significant reduction in debt ratio in the near future.
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