S&P warns 15 eurozone states of possible downgrade

5th December 2011, Comments 0 comments

Standard and Poor's on Monday placed Germany, France and 13 other eurozone members on a negative credit watch, warning that they could be hit with downgrades.

"Today's CreditWatch placements are prompted by our belief that systemic stresses in the eurozone have risen in recent weeks to the extent that they now put downward pressure on the credit standing of the eurozone as a whole," S&P said in a statement.

The warning threatened the AAA ratings of Germany, France, the Netherlands, Finland, Luxembourg and Austria.

S&P said it would complete a review of eurozone sovereign ratings "as soon as possible" following the European Union summit Thursday and Friday on the region's economic crisis.

Depending on the results of that summit, S&P said, "we believe ratings could be lowered by up to one notch for Austria, Belgium, Finland, Germany, Netherlands, and Luxembourg, and by up to two notches for the other governments."

© 2011 AFP

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