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20. 04. 11. - 14:52

Austrian banks not worried by US downgrading

Austrian banks are not worried by Standard & Poors (S&P) downgrading of the outlook for US debt from stable to negative this past Monday, according to the Austrian National Bank (OeNB).

It said yesterday (Tues) that Austrian banks had held 766 million Euros worth of US state securities as of the end of 2010.

Gerhard Rehor, a member of the board of Raiffeisenlandesbank Lower Austria-Vienna, added that the downgrading was the result of "a political skirmish" in the US that would soon end.

He said his bank did not have "the slightest concern" about the US credit-worthiness.

S&P said on Monday that it had downgraded the outlook for US debt owing to the high US budget deficit and political in-fighting over how to lower the debt.

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