FINANCIAL TIMES: Moody’s has lowered its outlook for triple A-rated Germany, the Netherlands and Luxembourg to negative from stable, in a move that highlights the dangers the core of the currency union faces from the eurozone debt crisis.
The rating agency said the outlook had changed because of both the increased likelihood of an exit by Greece from the single currency and the need for greater financial support for struggling eurozone countries from the strongest members of the bloc…
“The continued deterioration in Spain and Italy’s macroeconomic and funding environment has increased the risk that they will require some kind of external support,” said Moody’s. An exit by Greece “would pose a material threat to the euro” and that even in the event of a strong policy response from the eurozone, it would “set off a chain of financial-sector shocks”, it added…. (more)
