Forget The PIIGS and even the FUK US PIIGS! S&P is preparing to downgrade all of the strong (relatively) Euro nations!S&P has warned Germany, France, the Netherlands, Austria, Finland, and Luxembourg it is preparing to place them all on Creditwatch Negative later Monday- meaning a 50/50 chance of a ratings downgrade in the next 90 days!
Standard and Poor’s has warned Germany and the five other triple A members of the eurozone that they risk having their top-notch ratings downgraded as a result of deepening economic and political turmoil in the single currency bloc. The US ratings agency is poised to announce later on Monday that it is putting Germany, France, the Netherlands, Austria, Finland, and Luxembourg on “creditwatch negative”, meaning there is a one-in-two chance of a downgrade within 90 days. It warned all six governments that their ratings could be lowered to AA+ if the creditwatch review failed to convince its experts. Markets have been braced for a potential downgrade of France but few expected Germany’s top rating to be called into question.
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