We expect that Austria's economy will continue to buck the negative impact of the European sovereign debt crisis and that the government will stick to its 2012-2016 financial plan. We also expect the domestic banking industry will increase capital from the current levels, which we view as weak, containing risk from banks' generally low capitalization and their large exposure to Central, Eastern, and Southeastern European countries. As a result, we are revising our outlook on the long-term rating on Austria to stable from negative and affirming our 'AA+/A-1+' sovereign credit ratings. The stable outlook factors in our expectations that Austria's economy will continue to resist the negative impact of the European sovereign debt crisis, the government will adhere to its
