BANCI | ENGLISH

Erste Bank: Triple A Ratings: Score is still 2:1 for Austria

Autor: Bancherul.ro
2012-01-17 18:39

* S&P downgrade follows Moody’s and Fitch confirmation of Austria’s top rating
* Fundamentals remain healthy: well-diversified economy; competitive export sector
* Austrian sovereign debt and budget deficit at lower levels than euro zone average
* Government expected to take budget-consolidation measures to secure Austria’s standing

“The triple A ratings for Austria currently stand at 2:1; there is no reason to panic,” said Friedrich Mostboeck, Head of Research at Erste Group, according to a bank press release.

The rating agency Standard and Poor's (S&P) lowered Austria’s top rating from triple A to AA+, whereas Moody’s and Fitch confirmed Austria’s top grade just a few days ago.

Austria’s economic fundamentals are sound, but reforms are certainly needed

“In a context of enormously high global sovereign debt, the government will not be spared the need to take budget consolidation measures in order to secure the economic standing as a good business location and the competitiveness and financing capacity of its economy. Something must change, this has become very clear now,” said Mostboeck.

There are a number of facts that demonstrate Austria’s comparably better economic situation. On the one hand, the economy is well diversified in terms of sectors and structure. The relative strength of the domestic economic development results from a competitive export sector and good industrial capacity utilization that is grounded in a highly skilled workforce and advanced technological standards. As a result, unemployment is relatively low and the average income and purchasing power are relatively high. Austria’s overall debt and deficit are below the euro zone average.

Yields not expected to rise

As a consequence of the current rating situation, yields are not expected to rise significantly. There is no doubt that exceptional circumstances, such as the negative factors in Hungary, will cause irritation to yields in repeated short-lived phases. Overall, Austrian government bonds should continue to play the role of safe havens.
“If things are done correctly – based on a sober analysis of the fundamental data in relative comparison – there can be no doubt in expert opinion about Austria’s excellent rating. We are experiencing a global debt crisis that will pose a challenge for years to come,” said Mostboeck.

Austria’s ratings still in top notch range

This downgrade is the opinion of just one rating agency and it first has to be proven right. S&P has been known in the past to be stricter when assigning ratings than the other two agencies. It is the only rating agency that lowered the rating of the United States to AA+. Overall, Austria’s ratings are still in the top-notch range.

S&P has a 22-notch rating scale, running from AAA at the upper end, which is investment grade, to D at the lower end in the speculative range. Austria now ranks at the top, on notch 2 instead of 1. “It is as if we didn‘t get an “A+” according to the Austrian school grading system, but still made an “A” (very good),” explained Mostboeck.

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Merger of Alpha Bank and UniCredit Bank Romania

Press Release: "Alpha Services and Holdings announces a strategic partnership with UniCredit in Romania Merger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by total assets, with Alpha Bank retaining a detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policy In its meeting of 4 April 2023, the Board of the National Bank of Romania decided: • to keep the monetary policy rate at 7.00 percent per annum; • to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum; • to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions. The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release: ING posts FY2022 net result of €3,674 million,
proposed final 2022 dividend of €0.389 per share

4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%
•
Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income
•
Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter
•
Risk costs declined to 17 bps of average customer lending

Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits
•
On a full-year basis, our primary customer base grew by 585,000 detalii

BT Financial Results as at 30 September 2022

BT Financial Results as at 30 September 2022 Banca Transilvania – sustained growth in customers and operations during the first nine months of the year "We continued our robust growth in the number of clients and transactions, with a dynamic well above the market average. We have been growing steadily and continued financing companies and individuals, despite the fact that the financial market is more fraught with uncertainty than ever and
the funding costs and capital requirements are additional factors driving the uncertainty in the economy. We remain committed to our objective - to be the main supporter of the economy and of the state for the development of Romania", states Mr. Ӧmer Tetik, Chief Executive detalii

Vezi toate stirile

24.04.2024

1 EUR = lei
1 USD = lei

Sursa BNR

Profil de Bancher

Iuliana Anchidin, Head of Institutional Sales din cadrul Diviziei de Financial & Capital Markets
Piraeus Bank

"Avand expunere atat pe pietele emergente cat si ... vezi profil

Toate Profilele

Profil de Banca

Banca Transilvania

vezi detalii

Toate Bancile

Filmul Parking, un cliseu plictisitor

Toate stirile

ING Bank

Toate stirile

Ultimele Comentarii

Refuz de plată la o benzinărie suma de 103 euro
Mi s-au retras de două ori suma de 48 euro și suma de 103 euro suma corectă este de 48 de euro ... detalii
nevoia de banci
De ce credeti ca acum nu mai avem nevoie de banci si firme de asigurari? Pentru ca acum avem ... detalii
Mda
ACUM nu e nevoie de asa ceva .. acum vreo 20 de ani era nevoie ... ACUM de fapt nu mai e asa multa ... detalii
oprire pe salariu garanti bank
mi sa virat 2500de lei din care a fost oprit 850 de lei urmand sa mi se deblocheze restul sumei ... detalii
Amânare rate
Buna ziua, Am rămas în urma cu ratele , va rog frumos sa ma ajutați cumva , soțul a pierdut ... detalii

Nume	*
E-mail	*
E-mail prieten	*
Mesaj
Cod validare	*
	Tastati codul din imagine (doar cifre)
	195.154.184.126