Moody’s cuts EU outlook to ‘negative’
2012 09 05

From: RT.com

Moody’s ratings agency has downgraded its outlook on the AAA rating of the European Union from ‘stable’ to ‘negative,’ linking the decision to a recent outlook downgrade of the bloc’s major economies.

"The negative outlook on the EU’s long-term ratings reflects the negative outlook on the Aaa ratings of the member states with large contributions to the EU budget: Germany, France, the UK and the Netherlands, which together account for around 45 per cent of the EU’s budget revenue," Moody’s said in a statement on Monday.

The agency also cut its outlook on the provisional (P)Aaa rating of the EU’s medium-term note (MTN) program from ‘stable’ to ‘negative.’

The outlook downgrade comes after the agency changed to negative its outlook for Germany and Holland’s Aaa ratings on July 23. Moody’s explained that it was reasonable to assume that the EU’s creditworthiness should move in line with the creditworthiness of its strongest key member states. The outlook on France and the UK are also negative.

Moody’s warned that it may downgrade the European Union’s rating if it decides to cut the ratings of Germany, France, the UK and the Netherlands.

The agency also added that the outlook for the EU could go back to ’stable’ if the outlooks on the four major European economies are first.


Article from: rt.com





Related Articles


Latest News from our Front Page

Water rationing hits California: limit of 50 gallons per person per day or face fines of $500
2014 09 29
Millions of Californians are about to be hit with strict water rationing -- daily "allocation" numbers that represent the maximum amount of water you’re allowed to use for any purpose. Households that exceed the allocation limit will face stiff fines of hundreds of dollars per violation. "In July, the State Water Resources Control Board passed stage one emergency regulations, giving powers ...
Much of Earth’s Water is Older than the Sun
2014 09 29
Much of the water on Earth and elsewhere in the solar system likely predates the birth of the sun, a new study reports. The finding suggests that water is commonly incorporated into newly forming planets throughout the Milky Way galaxy and beyond, researchers said — good news for anyone hoping that Earth isn’t the only world to host life. “The implications of ...
Did the Vikings Get a Bum Rap?
2014 09 29
A Yale historian wants us to rethink the terrible tales about the Norse. This illustration shows the stereotype of Viking marauders wreaking mayhem, even on clergy. The scene depicts the monastery at Clonmacnoise, Ireland. The Vikings gave no quarter when they stormed the city of Nantes, in what is now western France, in June 843—not even to the monks barricaded in the ...
David Cameron Says Non-Violent Conspiracy Theorists Are Just As Dangerous As ISIS
2014 09 29
David Cameron told the U.N. that "non-violent extremism" is just as dangerous as terrorism and must be eradicated using all means at the government’s disposal. He references 9/11 and 7/7 Truthers as examples of the type of extremism that must be dealt in a similar fashion to ISIS. If you thought Obama’s War is Peace speech to the U.N. was creepy, ...
NY Times: Europe’s Anti-Semitism Comes Out of the Shadows
2014 09 28
NY Times Whines about European "Anti-Semitism" In the wake of the conflict in Gaza, three communities became flash points of violence and began contending with hatred they thought was buried in the past. Read the NY Times hit piece on Europe here Below is a rebuttal from Mike King’s The Anti-New York Times at tomatobubble.com: Strike up the violins and break out the barf ...
More News »