Moody’s cuts EU credit rating outlook
Good morning, and welcome to our rolling coverage of Europe’s debt crisis.
Overnight, ratings agency Moody‘s has lowered its outlook on the European Union’s AAA rating to negative, from stable, which is the first step towards a full downgrade.
The decision reflects the growing pressures on the four biggest countries who fund the EU: Germany, France, Britain, and the Netherlands, who together provide almost half of the EU’s budget.
Should their economic situations worsen, Moody’s argues, they could be forced to prioritise their own debt obligations rather than their commitments to the EU.
All four countries are rated AAA with Moody’s, but have seen their outlook cut to negative in recent months as the eurozone crisis has rolled on.
Here are some highlights from Moody’s statement (online in full here):