S&P upgrades Styria’s outlook from negative to stable

Rating agency Standard & Poor’s has confirmed Styria’s AA rating and upgraded its outlook from negative to stable, ORF reported on Saturday. The agency cited cost-cutting measures recently introduced by the state government.

S&P said the stable outlook reflected the government’s continued commitment to budget consolidation. Upcoming measures are expected to further tighten fiscal policy gradually and curb spending growth, leading to a gradual improvement in operating results and a reduction in post-investment deficits over the medium term.

State Finance Councillor Willibald Ehrenhöfer said Styria had turned its operating balance positive in 2025 through strict budget implementation and had significantly reduced new borrowing, also because of higher revenues. The state would continue this course with its 2026 budget, he said.

“The stable outlook is an important basis for securing Styria’s good creditworthiness for the future,” Ehrenhöfer said. At the same time, the state would continue to invest selectively in the business location to safeguard growth and jobs.

Governor Mario Kunasek said the upgrade was recognition of Styria’s approach at a time when public budgets were under heavy pressure. The state would continue to cut spending where possible without jeopardising education, healthcare and nursing care or support for people facing severe social hardship, he said.