Wednesday, February 15, 2012

Moody's Downgrades Credit Rating of Six European Nations

Credit Rating agency, Moody's, said earlier today (February 15) that it has downgraded six European nations, including Italy, Spain and Portugal, Malta, Slovenia and Slovakia, citing growing risks from Europe's debt crisis, and warned it could potentially cut the triple-A ratings of France, Britain and Austria in the future.

COMMENT: Moody's said it changed the outlooks for the ratings of France, Britain and Austria to negative due to "a number of specific credit pressures that would exacerbate the susceptibility of these sovereigns' balance sheets."

Germany's top-tier rating was described as "appropriate" by Moody's, and it affirmed the triple-A rating on the euro zone's bailout fund, the European Financial Stability Fund (EFSF).

Moody's, which said late last year it was reconsidering its European ratings, cut the ratings of Italy, Portugal, Slovakia, Slovenia and Malta by one notch. It downgraded Spain by two notches.

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