S&P: Germany And France Among 15 Euro Zone Nations Placed On Watch For Downgrade
2011-12-06 14:55:02
France and Germany are in danger of losing their pristine 'AAA' credit rating, as Standard & Poor's placed sovereign ratings of fifteen euro-zone countries on CreditWatch negative.
"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," the ratings agency said Monday afternoon in New York.
Reports surfaced earlier in the day suggesting that S&P would put the entire eurozone on warning for downgrade. Greece and Cyprus were left off today's statement.
S&P said that Germany, France, Austria, the Netherlands, Finland and Luxembourg -- all currently rated 'AAA' -- may be downgraded in the coming months.
The warning came even after German Chancellor Angela Merkel and French President Nicolas Sarkozy called for a new European Union treaty that would impose sanctions on fiscally irresponsible countries.
Merkel and Sarkozy held a meeting as part of an effort to iron out a plan to deal with the European debt crisis ahead of a European Union summit later this week.
Over the weekend, Italian Prime Minister Mario Monti unveiled 30 billion euros worth of austerity and growth measures.