LONDON (MNI) – The deal reached by euro zone leaders early last
Thursday will be ‘neutral to negative’ for triple-A rates euro area
sovereigns, ratings agency Moody’s says today in its latest weekly
credit outlook.
“These countries face increased exposure from European Financial
Stability Facility (EFSF) first-loss guarantees potentially being
called. Also, the prospect of additional mutual support implies a
greater risk to creditors of the countries that ultimately provide
support”.
Yet Moody’s agreed that there could be a big upside if the
measures succeed – “if the measures are successful, they could more than
offset this additional risk by improving overall credit conditions”.
–London Bureau; Tel: +442078627492; email: ukeditorial@marketnews.com
[TOPICS: M$X$$$,MGX$$$,MFX$$$]
