Moody's downgrades the forecast at long-term loans in EU
The agency said that the change reflects a negative forecast for some of the major contributors to the EU budget, such as Germany, France and Britain.
Articol de Ioana Dogaru, 05 Septembrie 2012, 07:25
Credit rating agency Moody's has fallen from stable to negative estimation regarding the prognosis for long-term credit in the European Union, informs BBC.
The rating agency said that in case of "extreme stress", Member States that have an AAA rating will immediately take care of their own savings and will not prioritize their commitment to support the European countries that have problems regarding debt.
The agency said that the change reflects a negative forecast for some of the major contributors to the EU budget, including Germany, France and Britain.
Moody's warned that if the credit rating of these Member States is relegated, this could have a domino effect on EU rating.
Moody's also warned that weakening the commitment to the EU Member States could have a negative impact on the status of credit institutions.
During this year, Moody's downgraded the perspective of the main European economies.
In May, Moody's downgraded the quotations of 16 Spanish banks, in June it negatively revised the evaluation for three Austrian banks and, subsequently, 15 banks worldwide.
In July, Moody's downgraded the perspective of 17 German banks and of the largest Italian banks.
Germany, France, the Netherlands and the UK, together represent about 45 percent of the EU budget revenues.
Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University
