Standard & Poor’s Ratings Services on Dec 5 placed its long-term sovereign
ratings on 15 members of the European Economic and Monetary Union (EMU or
eurozone) on CreditWatch with negative implications: Austria, Belgium, Estonia, Finland, France, Germany, Ireland, Italy, Luxembourg, Malta Netherlands, Portugal, Slovakia, Slovenia, Spain.
We now think that there is at least a one-in-two chance that we will lower each of the ratings that we have placed on CreditWatch.
WHAT PROMPTED THE CREDITWATCH PLACEMENTS?
In our view, systemic stress in the eurozone has risen in recent weeks and
reached such a level that a review of all eurozone sovereign ratings is
We believe that this systemic stress emanates from five interrelated factors.
We also believe that these factors influence the creditworthiness, in varying
degrees, of all the members of the eurozone.
Credit FAQ: Factors Behind Our Placement Of Eurozone Governments On CreditWatch also addresses the following questions:
WHY ARE YOU TAKING THESE ACTIONS NOW BEFORE A MAJOR SUMMIT?
WHAT SORT OF RESPONSE BY POLICYMAKERS DO YOU THINK MIGHT ADDRESS THESE CONCERNS?
HOW ARE THESE CONSIDERATIONS TAKEN INTO ACCOUNT IN YOUR RATING ANALYSIS?
WHEN WILL YOU RESOLVE THE CREDITWATCH STATUS?
HOW FAR COULD YOU LOWER THE RATINGS ON CREDITWATCH?