GLOBAL SOVEREIGN

JUNE 6, 2011

CREDIT ANALYSIS

Austria

Table of Contents:

Austria

SUMMARY RATING RATIONALE

Factor 1 Economic Strength
VERY HIGH
Factor 2 Institutional Strength
VERY HIGH
Factor 3 Government Strength
VERY HIGH
Factor 4 Susceptibility to Event
Risk - LOW
RATING HISTORY
SOVEREIGN MECHANICS: AUSTRIA
ANNUAL STATISTICS
MOODYS RELATED RESEARCH

1
2

Aaa/Stable

Aaa

Aaa

Bank Deposit Ceiling

Aaa

Aaa

Moodys sovereign rating list

8
9
10
11
13

44.20.7772.5454

Yves Lemay
44.20.7772.5512
Managing Director Banking
Yves.Lemay@moodys.com
49.69.7073.0700

Alexander Kockerbeck
49.69.7073.0724
Vice President Senior Credit Officer
Alexander.Kockerbeck@moodys.com
NEW YORK

Aaa/Stable

Country Ceiling

Kathrin Muehlbronner
44.20.7772.1383
Vice President Senior Analyst
Kathrin.Muehlbronner@moodys.com

FRANKFURT

Local Currency

Analyst Contacts:
LONDON

Government Bond Rating

Foreign Currency

1.212.553.1653

Bart Oosterveld
1.212.553.7914
Managing Director Sovereign Risk
Bart.Oosterveld@moodys.com

Summary Rating Rationale

Moodys rates the debt issued by the government at Aaa with a stable outlook. The rating is
underpinned by very high levels of economic, institutional and financial strength as well as
low event risk.
Austria emerged with stronger growth momentum from the recession than many of its
closest peers in the EU. GDP growth is expected to accelerate further this year to 2.4% and
return to around trend growth of 2% in 2012, mainly driven by exports and private
consumption. On a more fundamental perspective, the economy is well diversified and has
not exhibited any of the major macroeconomic imbalances of some of the other EU
sovereigns. The close ties to Central and Eastern Europe should also again turn into a
support for Austrias growth outlook in the coming years as the region is expected to resume
its stronger growth trajectory than the more advanced countries of the EU. Austrias
institutional strength is considered to be very high, in line with its closest peers.
Fiscal consolidation is starting in 2011, with the general government deficit forecast to
decline to 3.7% of GDP compared to 4.6% in 2010. However, Moodys views that the
Austrian governments fiscal efforts could be more ambitious against the background of solid
GDP growth. Austrias budget deficit as well as its public debt are higher than in other small
Aaa-rated EU countries. Its debt affordability ratio while compatible with a Aaa rating is
also higher than e.g. in Finland and the Netherlands. With regards to medium-term
pressures from rising age-related spending Austria is relatively well placed compared to many
other EU sovereigns and similar to its closest peers.

GLOBAL SOVEREIGN

Austrias susceptibility to event risk is considered to be low, rather than very low as is the case for its
closest peers. This is mainly due to the large exposure of Austrian banks to Central and Eastern Europe
and the contingent liability this entails for the government. However, Moodys believes that that these
risks will generally be manageable at the bank level, without posing a risk to the government balance
sheet. The debt of government-related entities might increasingly be added onto the government
balance sheet, as evidenced by Eurostats recent upward revisions to both budget deficit and public
debt. While this is to be welcomed as a step towards more transparency over the true liabilities of the
state, the impact on the public finances and government debt ratio and its trajectory will have to be
monitored closely.

Factor 1 Economic Strength VERY HIGH

Exports continue to drive recovery
Scale

Austria

Very High

High

Moderate

Low

Very Low

Moodys assesses Austrias economic strength as very high. We consider a variety of indicators to
determine a countrys economic strength, including the level of wealth, economic size, volatility of
GDP growth, the existence of macroeconomic imbalances and the medium-term growth outlook.
Wealthy economy with no major imbalances

The wealth of a country is an important determinant of sovereign creditworthiness as it affects the

amount of resources that a government can raise from the economy. Austrias 2009 per capita GDP is
very high at $38,748 on a PPP basis ($45,562 at market exchange rates), in line with Sweden and
Canada but higher than most of its Eurozone peers. Also, the Austrian economy is well-diversified,
compensating for the relatively small size of the economy. Moderate wage increases coupled with
improvements in overall labour productivity have helped to maintain international competitiveness as
evidenced by consistent current account surpluses since the early 2000s. Also, Austria did not
experience a real estate bubble and excessive build-up of debt in the private sector in the years leading
up to the financial crisis. The volatility of GDP growth has been broadly in line with that of other
highly-rated countries over the last decade.

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CREDIT ANALYSIS: AUSTRIA

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FIGURE 1

Relative unit labor cost (Index, 2005=100)

Austria

France

Germany

Netherlands

110
105
100
95
90
85
2005

2006

2007

2008

2009

2010

Source: OECD

Recovery is faster than in peers

Austrias economy is emerging more rapidly from the recession than some of its closest peers which are
mainly other Aaa-rated European sovereigns with a strong industry-based export sector like Germany,
France, the Netherlands and Switzerland (all Aaa with a stable outlook). With the exception of
Germany, Austrias real GDP growth was the fastest around the turn of the year, with Q1 2011
growth accelerating to 4% year-over-year. In contrast, the Netherlands and in particular France
recorded more subdued growth of 2.7% and 2.2% respectively.
FIGURE 2

Quarterly real GDP (seasonally adjusted) growth, yoy

Austria

France

Germany

Netherlands

Switzerland

6.0
4.0
2.0
0.0
-2.0
-4.0
-6.0
-8.0

Source: Eurostat

Austrias better-than-expected growth performance in 2010 was mainly driven by exports with real
exports increasing by 10.8% in 2010 compared to a year earlier. In 2011, growth is expected to expand
by around 2.4%, again mainly based on continuing strong growth in Austrias main trading partner,
Germany. Private consumption will probably also continue to support economic growth the labour
market performance has been surprisingly good, with significant employment creation last year
(+0.9%) and a decline in the already low unemployment rate to 4.4% from 4.8% in 2009, in stark

JUNE 6, 2011

CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

contrast to the labour market trends in virtually all EU countries except Germany. Investment (with
the exception of the construction sector) has also turned positive in the course of 2010 again. In a
more medium-term perspective, Austria could continue to post slightly higher growth rates than its
most immediate peers, based on the countrys strong trade and financial linkages to Central and
Eastern Europe which will likely again outpace Western Europe in terms of GDP growth in the
coming years 1.
In line with most highly-developed countries, Austria faces challenges from the ageing of the
population which will become a more important ratings driver over the coming years as the impact on
the public finances becomes more acute 2. The Austrian government estimates that total age-related
expenditure will increase by 3-4 percentage points of GDP between 2010 and 2050 (from 27.6% to
31% of GDP), broadly in line with the expected increase in its closest peers.
FIGURE 3

Old age related spending, % of GDP

35

2010

2050

30
25
20
15
10
5
0
Austria

Netherlands

Germany (1)

France

Finland

(1) The 2010 data for Germany refers to the value in 2007.
Source: Stability & Growth Program Updates, April 2011

Austria has implemented important pension reform measures in the past several years (including the
gradual raising of female retirement age from a comparatively low 60 years to 65 years (over a
transition period beginning 2024 and ending in 2033). But early retirement is still relatively
widespread despite the reforms (effective retirement age of 58.9 years compared to OECD average of
63.9 years, as of 2009) and according to the OECD the implicit tax rate on older workers is among
the highest in the EU, discouraging longer participation in the workforce. Later retirement would not
only have direct positive implications for the governments balance sheet in the form of lower pension
expenditure and higher tax revenues but also indirect positive growth effects via an expanded labour
supply and higher savings. The government has announced further reforms to discourage early
retirement but most of these come into effect only from 2014 onwards.

According to the IMFs latest forecasts from May 2011, GDP growth in the advanced European economies and Emerging Europe will average 1.8% and 4.3% for
2011/12 respectively. Growth will remain more subdued than before the crisis though. Source: IMF: Regional Outlook Europe.
See article on ageing and its potential impact on ratings in the Aaa Sovereign Monitor, August 2010

JUNE 6, 2011

CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

FIGURE 4

Implicit tax: Early retirement (% of average worker earnings)

70.0

2005

2007

2009

60.0
50.0
40.0
30.0
20.0
10.0
0.0
AUSTRIA

EU

OECD

Implicit tax on continued work in early retirement route, for 55 and 60-years-olds.
Source: OECD

Factor 2 Institutional Strength VERY HIGH

Very high institutional strength in line with other OECD and EU sovereigns
Scale

Austria

Very High

High

Moderate

Low

Very Low

In Moodys methodology institutional strength reflects an assessment of the efficiency and

predictability of government action as well as the transparency and degree of consensus on key policy
goals. A key question is whether existing institutions are conducive to the respect of contracts, in
particular those that matter regarding debt payments. Moodys uses both quantitative and qualitative
indicators to assess a sovereigns institutional strength.
In terms of quantitative indicators that Moodys considers in its assessment of institutional strength,
Austria scores very highly, in line with other highly-rated Euro zone and OECD countries. Austria
scored in the 94th percentile of the World Banks indicator of Government Effectiveness and in the
96th percentile regarding Rule of Law (2009).
In a more qualitative assessment, Moodys considers Austrias willingness and ability to honour its
obligations to be very high given its unblemished modern-history track record of timely payments.
Also, Austria has a track record of maintaining very low budget deficits for extended periods of time
(average general government deficit of 1.8% of GDP during 1998-2008). Moodys also views
favourably the governments medium-term fiscal planning with legal expenditure ceilings for a fouryear rolling period which introduces a greater degree of predictability and accountability into public
finances than is the case for many other countries. The recent amendments to the internal stability
pact with regional and municipal governments are also positive, as they should ensure a stronger
commitment to fiscal targets at all levels of governments (see more detailed discussion under Factor 3).

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CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

Factor 3 Government Strength VERY HIGH

Fiscal consolidation starts in 2011 but lacks ambition
Scale

Austria

Very High

High

Moderate

Low

Very Low

For sovereigns at very high rating levels, the governments financial strength tends to be the factor
most important for the credit rating. Moodys assesses the Austrian governments financial strength as
very high, in line with the countrys closest peers. This is mainly based on our expectation that the
government will be successful in reducing its relatively large fiscal deficit and stabilizing the public debt
ratio in the next several years. Austria has a proven track record of achieving and maintaining very low
budget deficits over an extended period.
Similar to other highly-rated sovereigns, Austrias public finances experienced a significant
deterioration in 2009 and 2010. Recently, the 2010 budget deficit was revised up by one percentage
point of GDP to 4.6% of GDP from 3.9% of GDP previously 3. These revisions were due to the
stricter Eurostat rules on inclusion into the public-sector balance sheet of transactions by governmentrelated entities (mainly transactions involving the railway company OeBB, several public hospitals as
well as the assumption by government of a part of the liabilities of the bad bank KA Finanz). While
the revision increases the transparency over the true liabilities of the government, we note that
following the revisions the Austrian government has adjusted its 2011 deficit target upwards and now
only targets a general government deficit of 3.9% of GDP against earlier plans of 3.2% 4. The
government aims to reduce the budget deficit further to 3.3% and 2.9% of GDP in 2012 and 2013.
While realistic and achievable, Moodys considers these targets to be not very ambitious, given that the
stronger-than-expected economic recovery should allow for a faster budget consolidation. Also,
Austrias fiscal consolidation is less ambitious than in other Aaa-rated Euro zone sovereigns with the
exception of France. According to the governments own projections the structural fiscal balance will
only be reduced very gradually from 3.2% of GDP in 2010 to 1.9% of GDP in 2014. The 2011
adjustment is broadly balanced between expenditure reduction and revenue raising measures (mainly a
tax on banks which is expected to bring in 40% of the targeted increase in revenues alone). Over the
next several years, a larger share of the adjustment is expected to come from the expenditure side with
overall spending declining from a very high level of 53% of GDP in 2010 to a still elevated 50.6% of
GDP in 2014.

3
4

The 2009 budget deficit was revised up by 0.6% of GDP to 4.1% of GDP.
New targets according to the Austrian Stability & Growth Program, published in April 2011.

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CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

FIGURE 5

Government fiscal targets (2011-2014)

Public debt (% of GDP)
Structural deficit (% of GDP), secondary axis

General government deficit (% of GDP), secondary axis

76

-5

75

-4

74

-3

73
-2

72

-1

71
70

0
2010

2011

2012

2013

2014

Source: Austrian Stability & Growth Program Update, April 2011

Similar to the federal government the sub-national governments are also allowed to run larger deficits
than targeted a year ago. Their combined deficit stood at 1.2% of GDP in 2010 versus a target of
0.5% of GDP. The recently revised Internal Stability Pact sanctions deficits of 0.75% of GDP for
2011 (versus a target of 0.3% of GDP a year ago) and slowly declining budget deficits for the
following years. Moodys considers the revisions to the Pact as generally positive as it now envisages
stricter sanctions in case of deviation from the budgetary targets as well as clearer rules for guarantees at
all levels. It should therefore ensure a stronger commitment from the regions to fiscal consolidation 5.
Moodys considers Austrias budgetary framework to be stronger than in many other EU countries. In
2009, the authorities introduced legally binding expenditure ceilings for all (federal) ministries within
a four-year rolling budget framework. This provides for greater predictability and expenditure control,
at least at the federal government level.
The government forecasts that the public debt ratio will increase to 75.5% of GDP by 2013 and only
start to decline slowly afterwards. However, this forecast does not assume further revisions to what in
effect constitutes government debt (see discussion under Factor 4) which may materialize in the
coming years. Assuming average real and nominal GDP growth of 2.5% and 4.1% respectively
(average growth rates for period 1999-2007) and Austrias average budget deficit of 1.8% of GDP for
the same period the public debt would decline to the Maastricht ratio of 60% of GDP only towards
the end of the next decade. While lower than Germanys and Frances public debt ratio, we note that
Austria has the highest debt burden among the smaller Euro zone sovereigns that have a Aaa rating
(Finland, the Netherlands and Luxembourg) as well as Switzerland. Consequently, Austria debt
affordability indicator (debt interest payments as a share of public revenues) is also worse than in those
countries, although the ratio remains within the parameters of a Aaa-rated sovereign with a ratio of 66.5% in the coming years.

The new limits on guarantees are in reaction to the bailout of Hypo Alpe-Adria Bank by the central government in December 2009 and expanding guarantees on the
Lnder level in general. Many Austrian regions had provided their Landeshypothekenbanks with guarantees, in some cases exceeding their budgetary size by multiples.
These specific guarantees will be phased out until 2017, but remain a key risk factor until then. For a more detailed discussion see Moodys Special Comment New
Austrian Stability Pact Credit Positive Implementation Will Be Key

JUNE 6, 2011

CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

FIGURE 6

General government gross debt (% of GDP)

2008

2009

2010

80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Finland

Austria

Netherlands

Switzerland

Netherlands

Switzerland

Source: IMF, Eurostat

FIGURE 7

General government interest expenditures (% of revenues)

2008

2009

2010

7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Finland

Austria

Source: IMF, Eurostat

Factor 4 Susceptibility to Event Risk - LOW

Limited risks from banking sector and government-related entities
Scale

Austria

Very Low

Low

Moderate

High

Very High

Moodys assesses Austrias susceptibility to event risk as low, rather than very low as for Austrias
closest peers. This primarily reflects Moodys concerns over the large exposure of Austrian banks to

JUNE 6, 2011

CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

Central and Eastern Europe 6. Risks of further deterioration in asset quality persist, given the divergent
prospects for economic recovery in the different countries in the CEE region as well as the potential
impact of ongoing strength of the Swiss franc, the preferred currency of foreign-currency lending in
the region. However, Moodys expects that these risks will generally be manageable at the bank level,
without posing a risk to the government balance sheet 7. Political and economic risks are considered to
be very low.
Other contingent liabilities are mainly related to the government-owned entities that are currently
classified outside of the government sector, namely railway company OeBB, public motorway
financing company Asfinag and the public real-estate company BIG. OeBB liabilitites of EUR 4.9
billion have now been brought onto the governments balance sheet but further reclassifications by
Eurostat in the future could potentially lead to the entire debt of OeBB (of approx. EUR 13 bn or
4.5% of GDP as of end-2010) to be classified within the government sector. BIG is a significantly
smaller entity with debt outstanding of EUR 3.4 billion as of end-2010. Asfinag benefits from a state
guarantee on EUR 9 billion of its total outstanding liabilities of EUR 11.4 billion. Including all these
liabilities in the public debt would raise the governments debt ratio by around 8% of GDP.

Rating History
Austria
Foreign Currency Ceilings
Bonds & Notes

Government Bonds

Bank Deposit

Foreign
Currency

Local Currency

Outlook

Date

Long-term

Short-term

Long-term

Short-term

Rating Withdrawn

WR

WR

WR

WR

--

--

--

Jul-99

Outlook Assigned

--

--

--

--

--

--

Stable

Mar-97

Rating Assigned

--

--

--

--

--

Aaa

--

Oct-86

Rating Assigned

Aaa

--

Aaa

--

--

--

--

Apr-85

Rating Assigned

--

P-1

--

P-1

--

--

--

Dec-85

Rating Assigned

--

--

--

--

Aaa

--

--

Jun-77

According to last available data from the Austrian central bank, the exposure to the region amounted to EUR 212.5 billion as of Q2 2010, equivalent to close to 75% of
GDP. Source: Oesterreichische Nationalbank, Financial Stability Report 20, December 2010
As of end-2010 Austrian banks have issued bonds with a government guarantee of a total amount of EUR 21 billion and the government has contributed close to EUR 6
billion in capital to several financial institutions.

JUNE 6, 2011

CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

Sovereign Mechanics 8: Austria

ECONOMIC
STRENGTH

How strong is the economic structure?

Very High

SCALE

Diversification/size

GCP/capita

High

Moderate

Long-term Trends

Low

ECONOMIC
RESILIENCY

Very Low

INSTITUTIONAL
STRENGTH

How robust are the institutions and how predictable are the policies?

High

RATING RANGE:
Aaa Aa2

Balance of Payment
tool kit

Government balance
sheet tool kit
High

Moderate

Low

Very Low

What is the risk of a direct and sudden threat to debt repayment?

Financial

Very Low

10

Very Low

How does the debt burden compare with the government' s resource
mobilization capacity?

SUSCEPTIBILITY
TO EVENT RISK

Low

Very High

SCALE

Moderate

Transparency

GOVERNMENT
FINANCIAL
STRENGTH

SCALE

Governance

Rule of Law

Very High

SCALE

Economic

Low

Moderate

FINANCIAL
ROBUSTNESS

Political

High

Very High

Link to our Sovereign Bond Rating Methodology

JUNE 6, 2011

CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

Annual Statistics
Austria
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011F

2012F

190.2

206.0

252.0

289.0

302.9

322.3

372.3

414.7

381.1

393.8

400.0

414.3

8.0

8.1

8.1

8.2

8.2

8.3

8.3

8.3

8.4

8.4

8.4

8.5

GDP per capita (US$)

23,642

25,479

31,046

35,358

36,792

38,919

44,850

49,739

45,562

46,923

47,522

49,026

GDP per capita (PPP basis, US$)

28,801

30,225

31,078

32,571

33,377

36,104

37,711

39,675

38,748

--

--

--

Nominal GDP (% change, local currency)

2.4

3.0

2.0

4.2

4.6

5.5

5.9

4.1

-3.1

3.5

4.1

3.8

Real GDP (% change)

0.5

1.6

0.8

2.5

2.5

3.6

3.7

2.2

-3.9

2.0

2.4

2.0

Inflation Rate (CPI, % change Dec/Dec)

2.0

1.8

1.2

2.9

1.6

1.4

3.6

1.3

1.0

2.2

2.8

2.4

Economic Structure and Performance

Nominal GDP (US$ Bil.)
Population (Mil.)

Unemployment Rate (%)

3.6

4.2

4.3

4.9

5.2

4.8

4.4

3.8

4.8

4.4

4.3

4.2

Gross Investment/GDP

23.7

22.1

22.9

22.7

22.5

22.3

23.2

23.2

21.3

22.0

22.3

22.4

Gross Domestic Saving/GDP

26.0

26.8

26.3

26.5

26.6

27.4

28.9

29.0

25.7

26.9

27.9

28.6

Nominal Exports of Goods and Services (% change, US$ basis)

3.8

9.6

21.2

22.5

9.4

11.5

20.6

11.1

-21.6

13.1

6.1

8.4

Nominal Imports of Goods and Services (% change, US$ basis)

3.0

3.7

24.6

22.4

9.4

9.6

19.6

11.1

-20.9

13.4

5.0

7.9

Real Exports of Goods and Services (% change)

6.2

3.9

1.5

10.1

7.4

7.7

8.6

1.0

-16.1

10.8

7.0

6.8

Real Imports of Goods and Services (% change)

5.6

-0.4

4.5

9.8

6.4

5.4

7.0

-0.9

-14.4

9.2

5.9

6.3

Net Exports of Goods and Services/GDP

2.2

4.8

3.5

3.8

4.0

5.1

5.8

5.8

4.5

4.9

5.6

6.1

Openness of the Economy [1]

94.7

93.3

93.7

100.0

104.4

108.5

112.9

112.6

96.5

105.8

109.9

114.8

Government Effectiveness [2]

--

1.94

1.95

1.82

1.62

1.72

1.78

1.63

1.63

--

--

--

Gen. Gov. Revenue/GDP

51.5

50.1

50.0

49.6

48.5

47.8

48.0

48.3

48.8

48.3

48.7

48.7

Gen. Gov. Expenditures/GDP

51.7

51.0

51.7

54.2

50.3

49.5

49.0

49.3

53.0

53.0

52.4

52.0

Gen. Gov. Financial Balance/GDP

-0.2

-0.9

-1.7

-4.6

-1.8

-1.7

-1.0

-1.0

-4.1

-4.6

-3.7

-3.3

Gen. Gov. Primary Balance/GDP

3.4

2.5

1.4

-1.6

1.2

1.2

1.9

1.7

-0.6

-1.2

-0.9

-0.3

125.67

152.52

184.78

205.31

183.74

210.00

242.93

251.17

275.16

274.20

298.96

307.78

67.1

66.5

65.5

64.8

63.9

62.1

60.7

63.8

69.6

72.3

73.8

75.4

130.3

132.6

131.0

130.5

131.8

129.8

126.5

132.1

142.7

144.3

151.6

154.8

7.0

6.8

6.2

6.0

6.2

6.1

6.0

5.6

5.7

5.6

5.7

6.2

Government Finance

Gen. Gov. Debt (US$ Bil.) [3]

Gen. Gov. Debt/GDP [3]
Gen. Gov. Debt/Gen. Gov. Revenue [3]
Gen. Gov. Interest Payment/Gen. Gov. Revenue

11

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CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

Austria
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011F

2012F

Nominal Exchange Rate (local currency per US$, Dec) [4]

1.13

0.95

0.79

0.73

0.85

0.76

0.68

0.72

0.69

0.75

0.73

0.75

Real Eff. Exchange Rate (% change)

0.2

0.8

3.5

1.3

-0.5

-0.8

0.8

0.7

0.8

-2.7

--

--

External Payments and Debt

Relative Unit Labor Costs (2005 = 100)

93.9

95.1

98.8

100.5

100.0

97.5

96.7

93.9

95.6

96.1

--

--

Current Account Balance (US$ Bil.)

-1.57

5.53

4.26

6.01

6.11

8.91

13.2

20.1

11.8

10.8

14.80

17.81

Current Account Balance/GDP

-0.8

2.7

1.7

2.1

2.0

2.8

3.5

4.9

3.1

2.7

3.7

4.3

1.5

-2.6

0.0

-1.5

-0.1

-1.4

-2.0

-5.4

-0.1

-1.1

-0.6

-0.9

Net International Investment Position/GDP

-26.3

-21.0

-15.8

-17.6

-22.7

-20.0

-18.3

-16.9

-3.8

-0.6

--

--

Official Foreign Exchange Reserves (US$ Bil.)

11.44

8.54

7.14

6.76

6.30

6.57

10.26

8.24

4.78

6.17

5.09

4.26

Net Foreign Direct Investment/GDP

Notes:
[1] Sum of Exports and Imports of Goods and Services/GDP (%)
[2] Composite Index with values from -2.50 to 2.50, higher absolute numbers suggest better level of maturity and responsiveness of government institutions
[3] Eurostat and Moody's
[4] Euro adopted in 1999

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CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

Moodys Related Research

Credit Opinion:

Austria, Government of

Special Comments:

Austrian RLGs: New Stability Pact Is Credit Positive, but Implementation Will Be Key, April
2011 (132397)

Assessing the Effect of a Potential Greek Default, May 2011 (133335)

Sovereign Credit Risk in Eurozone Countries Under Stress, December 2010 (129633)

Rating Methodology:

Sovereign Bond Ratings, June 2008 (109490)

Sovereign Methodology Update. Narrowing the Gap a Clarification of Moodys Approach to

Local Vs. Foreign Currency Government Bond Ratings. February 2010 (118820)

Statistical Handbook:

Moodys Statistical Handbook Country Credit. November 2010 (128593)

Special Report:

Aaa Sovereign Monitor, January 2011 (129433)

To access any of these reports, click on the entry above. Note that these references are current as of the date of publication of
this report and that more recent reports may be available. All research may not be available to all clients.

13

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CREDIT ANALYSIS: AUSTRIA

GLOBAL SOVEREIGN

Report Number: 133549

Author
Kathrin Muehlbronner

Senior Production Associate

Judy Torre

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CREDIT ANALYSIS: AUSTRIA