Moody's said Monday it will review the credit ratings of all EU countries in the first quarter of next year after a summit of European leaders last week failed to deliver "decisive policy measures."

"The absence of measures to stabilise credit markets over the short term means that the euro area, and the wider EU, remain prone to further shocks and the cohesion of the euro area under continued threat," the ratings agency said in a statement.

"In view of the continued absence of decisive policy measures despite the recent euro area summit, Moody's Investors Service is reiterating its intention to revisit the ratings of all EU sovereigns during the first quarter of 2012."

Asian markets rose Monday as investors cautiously welcomed last week's agreement by 26 of the 27 EU members to introduce tougher fiscal rules in a bid to save the eurozone.

However, traders remained nervous as Britain chose not to join the deal.

Fellow ratings agency Standard & Poor's last week warned the eurozone of a downgrade if it was unable to come up with a viable plan.

Moody's said last week's announcement by EU policymakers offered "few new measures".

"The announced measures therefore do not change Moody's previously expressed view that the crisis is in a critical and volatile stage, with sovereign and bank debt markets prone to acute dislocation which policymakers will find increasingly hard to contain."

channelnewsasia.com