Keep up with the news by installing RT’s extension for . Never miss a story with this clean and simple app that delivers the latest headlines to you.

 

Moody’s cuts EU outlook to ‘negative’

Published time: September 03, 2012 22:44
Edited time: September 04, 2012 03:58
Moody’s cuts EU outlook to ‘negative’

Moody’s cuts EU outlook to ‘negative’

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.

Comments

Add comment

Authorization required for adding comments

Register or

Name

Password

Show password

Register

or Register

Request a new password

Send

or Register

To complete a registration check
your Email:

OK

or Register

A password has been sent to your email address

Edit profile

X

Name

New password

Retype new password

Current password

Save

Cancel

Follow us

Follow us