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Moody’s Downgrades The E.U. Rating


Louise

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Moody’s downgrades European Union’s outlook to negative.

These developments are not totally surprising to most binary analysts when taking into consideration the outlook changes of Germany, France, UK, and Holland.

More interesting is the fact that Moody’s might even further cut the EU ratings due to the changes to the EU’s fiscal framework that imply in a conservative budget management.

AtFrankfurt am Main, Germany on September 03, 2012 — Moody’s Investors Service has today changed to negative from stable its outlook on the Aaa long-term issuer rating of the European Union (EU). The rating agency has also changed to negative from stable its outlook on the provisional (P)Aaa rating of the EU’s medium-term note (MTN) programme.

Most likely the main reason for the outlook change to negative reflects the negative outlooks now assigned to the Aaa sovereign ratings of key contributors to the EU budget: Germany, France, the UK and the Netherlands, which together account for around 45% of the EU’s budget revenue.

Source: binaryoption

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