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S&P: Hypo Group Bankruptcy Would Trigger Downgrade in Austrian Banking Sector

Published: March 8, 2014; 08:49 · (Vindobona)

In case of a bankruptcy of the nationalized bank Hypo Group Alpe Adria, the three largest Austrian banks Erste Group, Bank Austria and Raiffeisen Zentralbank might be downgraded by one or two notches.

S&P: Hypo Group Bankruptcy Would Trigger Downgrade in Austrian Banking Sector / Picture: © Wikipedia / Magnus Manske

The U.S. rating agency S&P warned of Hypo Group´s bankruptcy. According to S&P, the Austrian government should find an orderly solution. In total, follow-up costs for the Austrian banking sector might range between € 6bn and € 8bn. In the end, Austrian borrowers would have to accept higher borrowing costs, governor of the Austrian National Bank Ewald Nowotny said a few…

This article includes a total of 371 words.

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