S&P revises Austria’s credit rating outlook to positive and sees improvements in energy supply By Reuters

(Reuters) – Credit rating agency S&P Global Ratings revised Austria’s outlook to positive from stable, citing the country’s improving energy supply position and sound fiscal position.

“The positive outlook reflects the potential for Austria’s energy supply position to improve further while its economy remains solid over the next 24 months,” S&P said in a statement late Friday, affirming AA+/A-1+ a the country in the long and short term. foreign and local currency sovereign credit ratings.

The positive outlook also reflected the possibility of clear and visible fiscal consolidation, with budget deficits shrinking, the agency added, expressing its view as the Austrian government prepares for general elections on Sept. 29.

S&P said it sees Austria’s economy as “broadly resilient” even as a long-running take-or-pay contract between Austria’s biggest energy supplier OMV and Russian gas firm Gazprom (MCX: end of this year, when gas transit. the contract between Russia and Ukraine is due to expire.

It noted that while Austria’s exposure to Russian gas remains relatively high, at 83% of total gas imports as of June, it noted that the country has made significant progress in diversifying its energy supply.

Thus, Austria appeared well-equipped to deal with potential short-term disruptions resulting from the termination of the transit contract between Ukraine’s Naftogaz and Gazprom, S&P said.

The rating agency expects Austria to post a general public deficit of 3.0% of gross domestic product (GDP) this year, which it expects will fall to 2.5% by 2027.

S&P noted that the budget plans followed by a new government after the election could differ from its current forecasts and it might need to follow a stricter consolidation path to be in line with the European Union’s fiscal framework.