Moody’s Downgrades Italy, Spain, Portugal And Others; Puts UK, France On Outlook Negative – Full Statement
by Tyler Durden
You know there is a reason why Europe just came crawling with an advance handout looking for US assistance: Moody’s just went apeshit on Europe. In other news, we wouldn’t want to be the company that insured Moody’s Milan offices.
Moody’s adjusts ratings of 9 European sovereigns to capture downside risks
As anticipated in November 2011, Moody’s Investors Service has today adjusted the sovereign debt ratings of selected EU countries in order to reflect their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis and how these risks exacerbate the affected countries’ own specific challenges.
Moody’s actions can be summarised as follows:
– Austria: outlook on Aaa rating changed to negative
– France: outlook on Aaa rating changed to negative
– Italy: downgraded to A3 from A2, negative outlook
– Malta: downgraded to A3 from A2, negative outlook
– Portugal: downgraded to Ba3 from Ba2, negative outlook
– Slovakia: downgraded to A2 from A1, negative outlook
– Slovenia: downgraded to A2 from A1, negative outlook
– Spain: downgraded to A3 from A1, negative outlook
– United Kingdom: outlook on Aaa rating changed to negative
Please see the individual country specific statements below for more detailed information relating to the rating rationale and the sensitivity analysis for each affected sovereign issuer.
The implications of these actions for directly and indirectly related ratings will be reported through separate press releases.