Monday, December 5, 2011

S&P Threatens to Downgrade all of Europe, Including Germany

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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8 comments:

Rahul said...

Rating agencies are a joke. It won't matter what they do. Ultimately the market will decide who's the weak link.

Anonymous said...

Great.........downgrade them to junk !!!!!!!

yvan said...

No downgrade of the US ????

Vissarion said...

Yess well I'm from the netherlands and I'm kind of suprised by this. I'm not saying we are flawless here, but I really think they should start looking at downgrading the US to junk. But they don't ... F****NG cowards.

AGXIIK said...

The rating agencies are paid waaaay to much money by us to give truth to our real credit rating. We are just above Greece, Italy and Portugal but a little below Germany in debt to GDP If you use that test, we are probably Aa1

Anonymous said...

All the major rating agencies are housed in the US. We borrow at 2% fixed for 10 years and an astonishing 3% fixed for 30 years, print dollars to infinity, with an inflation rate of 9% and then threaten to downgrade the Euro zone.

Is it possible there are bigger lies in this universe? Maybe? Someone let us know when you find one.

Anonymous said...

upcoming EU summit later in the week.

Looks like more pressure to get something concrete done...

Anonymous said...

In a sick sort of way I hope the EU, ECB, IMF and fed get some sort of patch over this sucking chest wound. Why would I want to see this? Aside from the fact that the fix is in, I am frankly greedy to buy more metals and get myself extracted from paper assets. A bit mroe time would help that end.

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