A string of credit downgrades and economic headwinds have put Austrian sovereign debt in the crosshairs of major Wall Street strategists. Austria’s sovereign bonds are getting the cold shoulder from one of Wall Street’s biggest names. AdvertisementFitch Ratings downgraded Austria’s Long-Term Foreign-Currency Issuer Default Rating from ‘AA+’ to ‘AA’ back on June 6, 2025, assigning a Stable outlook. Morgan Stanley’s July report did express a preference for select European markets, but did not mention any specific trading advice concerning Austrian bonds. With two agencies already having downgraded Austria and JPMorgan pegging the odds of further action at 50%, the risk of additional spread widening is real.