Fitch Affirms Sovereign Ratings Of Austria & Portugal

(RTTNews) - Fitch Ratings maintained the sovereign ratings of Austria and Portugal on Friday.

The rating agency kept the ratings of Austria at 'AA+' with Stable Outlooks. At the same time, Portugal's ratings were affirmed at 'BB+' with a Stable Outlook.

Fitch expects Austria's budget deficit to widen to 1.4 percent of GDP in 2016 due to weak revenues following the implementation of tax relief measures. However, the deficit is seen narrowing to 1.3 percent next year on improved revenues.

Further, Fitch forecasts Austria's gross general government debt to decrease to 84 percent of GDP in 2016 and 82.6 percent in 2017, after peaking at 85.5 percent in 2015.

The rating agency projected the economy to grow 1.5 percent in 2017-2018. Nonetheless, Fitch said risks are still embedded in the Austrian banking sector despite substantial improvements.

The agency said Portugal's ratings were supported by sturdy institutions, a strong business environment and one of the strongest rates of per capita income in the 'BB' category.

These factors are balanced by high levels of public and private indebtedness, a weak growth performance and legacy problems in the financial system.