Moody’s warns eurozone core

Source: 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.

“Moody’s now has negative outlooks on those Aaa-rated euro area sovereigns whose balance sheets are expected to bear the main financial burden of support,” it said.

Finland’s triple A-rating was affirmed with a stable outlook given the country’s “unique credit profile”, leaving it as the sole exception among euro area sovereigns.

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