Austria has officially lost its last AAA credit rating from a major credit rating agency, being downgraded to AA (high) by Morningstar DBRS. This decision, attributed to persistently high budget deficits and deteriorating debt metrics, ends Austria's decades-long status as one of Europe's most highly-rated borrowers. The downgrade follows a 14-year decline, initiated by S&P Global Ratings during the European debt crisis. DBRS highlighted that Austria's fiscal deficits have widened beyond pre-pandemic levels, primarily due to increased expenditure. The Austrian government, led by Finance Minister Markus Marterbauer, is under pressure to present a two-year budget aimed at reducing the deficit to below 3% of GDP by 2028 to align with European Union regulations. Despite recent downgrades, including a cut by Fitch Ratings, the market response has been muted, with Austria's 10-year government bonds yielding only 24 basis points more than those of AAA-rated Germany, indicating a relatively stable bond market despite the credit rating changes.