Austria Stable at AAA: Moody's

The agency is not alone in its concern. On Dec. 6, Standard & Poor’s warned that the continuing crisis could lead it to cut ratings on 15 of the 17 euro zone countries, including formerly solid Germany, France and Austria. And on Dec. 16, Fitch Ratings put six euro zone countries, including Spain and Italy, on watch for possible downgrades in the near term, citing its disbelief that a comprehensive solution to the crisis was possible.

Two European government sources who declined to be identified said that S&P’s decision on those 15 ratings was expected in January. One was quoted in the report saying, “We have got an informal signal from Standard & Poor’s that they will come only in January.”

Moody’s also said that, although Austria’s AAA ratings were still stable, they were growing ever more dependent on a resolution of the euro zone crisis “which has begun to negatively affect core euro area member states like Austria.” It also pointed out that the considerable size of the country’s banking sector, coupled with its exposure to central and eastern Europe, meant substantial risk.