Moody's affirms Austria at Aaa, but warns of event risk
NEW YORK, Sept 21
NEW YORK, Sept 21 (Reuters) - Moody's Investors Service on F riday affirmed Austria's top Aaa government bond rating, but warned it might eventually cut the rating on the country's vulnerability to the euro zone debt crisis.
In a statement, the credit rating agency cited Austria's "widely diversified and competitive" economy, as well as the country's "good track record of achieving and maintaining low budget deficits."
But Moody's kept its outlook negative.
"In Moody's view the likelihood is rising that Austria - alongside the other strong euro area states - will need to commit significant additional resources to support euro area sovereigns and their banks," the statement noted.
"In addition, Austria's banking sector itself continues to constitute a vulnerability given the banks' continued weak asset quality and capitalization levels, which prompted the negative outlook on Austria's Aaa sovereign rating in February 2012."
(Reporting by Luciana Lopez and Caryn Trokie; Editing by Dan Grebler)
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