It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Standard & Poor’s put 15 European Union nations on watch for a possible downgrade of their credit ratings as the continent’s debt crisis lingers. The threat to downgrade the euro zone countries — including the ones that enjoy the stellar triple-A-rating — comes ahead of a crucial summit of EU leaders later this week. The nations include Austria, Belgium, Estonia, Finland, France, Germany, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, the Solvak Republic, Slovenia and Spain. Greece and Cyprus were not included on the list. Cyprus was already on negative watch. Earlier, the Financial Times had reported that the ratings agency warned Germany, France, the Netherlands, Austria, Finland and Luxembourg that the countries’ top-notch ratings could be downgraded to double-A plus
“(There is) rising risk of economic recession in the euro zone as a whole in 2012
The agency's decision is uncontroversial, says the BBC's Robert Peston, because eurozone banks have been struggling to borrow, a number of eurozone economies are buckling under the burden of big government and household debts and there is a significant risk of recession.
The company traces its history back to 1860, with the publication by Henry Varnum Poor of History of Railroads and Canals in the United States. This book was an attempt to compile comprehensive information about the financial and operational state of U.S. railroad companies. Henry Varnum went on to establish H.V. and H.W. Poor Co. with his son, Henry William, and published annually updated versions of this book. In 1906, Luther Lee Blake founded the Standard Statistics Bureau, with the view to providing financial information on non-railroad companies. Instead of an annually published book, Standard Statistics would use 5" x 7" cards, allowing for more frequent updates. In 1941, Poor and Standard Statistics merged to become Standard & Poor's Corp. In 1966, the company was acquired by The McGraw-Hill Companies, and now encompasses the Financial Services division
Here's the press release on why S&P changed the EU's long-term outlook to negative: --- On Dec. 5, 2011, Standard & Poor's placed the ratings on 15 of the 17 member states of the European Monetary and Economic Union (EMU or eurozone) governments on CreditWatch with negative implications. As a result, the ratings on 17 European Union (EU) member states are now on CreditWatch with negative implications. We are therefore also placing the 'AAA' long-term rating on the EU on CreditWatch negative. At the same time, we are affirming the 'A-1+' short-term rating on the EU. The CreditWatch placement on the eurozone member states was prompted by our concerns about the potential impact on these member states of what we view as deepening political, financial, and monetary problems within the eurozone. Eurozone members directly contribute approximately 62% of the EU's total 2011 budgeted revenues. Our CreditWatch review will focus on the financial ability of eurozone member states to support the EU's debt service should the institution face a period of financial distress. We expect to conclude our review as soon as possible after the European summit on Dec. 9, 2011. Depending on the outcome of our review of the ratings on eurozone member governments, we could lower the long-term rating on the EU by one notch, if any. Read more: www.businessinsider.com...