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IPFS News Link • Economy - International

Eurozone nations set for S&P downgrade


Eurozone governments are bracing for new debt-crisis turbulence after ratings agency Standard & Poor’s told them it would downgrade two of the eurozone’s six triple A nations.

One official told the Financial Times that France and Austria are set to be downgraded but this has yet to be confirmed by either the agencies or the governments.
The official said the ratings agency planned to lower the two nation’s ratings to AA+, leaving Germany as the only large triple-A country underwriting the triple A-rated eurozone rescue fund, the European Financial Stability Facility.

The move comes after S&P warned the six triple A nations and nine others in the eurozone that it had put their creditworthiness on review as a result of the debt crisis and the worsening economic outlook.

Since its December warning, officials said, S&P had decided to leave the ratings of Germany, the Netherlands, Finland and Luxembourg unchanged at triple A, with their outlook unchanged at “stable”.