Austria Bank Capital Needs Decisive for Aaa Rating, Moody’s Says
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Austria’s top debt ranking is most threatened by the potential for another round of state aid for the nation’s banks, Moody’s Investors Service said, the second such alarm from a rating company in as many months.
Moody’s cut Austria’s outlook to “negative” and may strip its Aaa rating if lenders require a second bailout, given the nation’s finances have worsened since 2008, the company said yesterday. The outlook could return to “stable” if banks can bolster capital without state help, Moody’s said. Standard & Poor’s cited bank risks when it cut Austria to AA+ last month.