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BRIEF-Moody's says Austria's key credit strength is its wealthy, diversified and competitive economy
July 6, 2017 / 10:57 AM / 5 months ago

BRIEF-Moody's says Austria's key credit strength is its wealthy, diversified and competitive economy

July 6 (Reuters) - Moody’s

* Moody’s says Austria’s key credit strength is its wealthy, diversified and competitive economy

* Moody’s says has revised up its GDP growth forecasts for Austria to 2.5% in 2017 compared with 1.5% previously, and to 2.2% in 2018 from 1.3%

* Moody’s says Austria’s credit strengths include its very wealthy and diversified economy, low private sector debt and high debt affordability

* Moody’s says Austria’s credit challenges include low potential growth, high government debt and contingent liabilities from the banking sector

* Moody’s says Austria economy “does not exhibit major macroeconomic imbalances, and low private-sector debt provides a buffer against shocks”

* Moody’s - Despite elevated debt burden, Austria’s debt affordability-as measured by interest payments as percentage of either GDP or government revenue-remains high

* Moody’s - do not expect Austria’s strong economic momentum in 2017-18 to last, with economic growth likely to slow to potential rate of around 1% in medium-term

* Moody’s says upward pressure on Austria’s issuer rating could build up if economic growth outperforms Moody’s expectations in the medium-term

* Moody’s says stable outlook on Austria’s AA1 rating reflects Moody’s view that risks to the country’s credit profile are limited

* Moody’s says downward pressure would result if Austria’s medium-term growth prospects weaken Source text for Eikon:

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