Moody’s Investor Services announced this morning that it would follow Standard & Poor’s move late last month and would reduce Italy’s credit rating. Moody’s said that due to the fear of debt contagion sweeping across the region, all European countries currently below the top rating of AAA could be facing further downgrades.
“All but the strongest euro-area sovereigns are likely to face sustained negative pressure on their ratings,” Moody’s said. “Consequently, Moody’s expects fewer countries below AAA to retain high ratings.” It added that “there are no immediate pressures that could cause downgrades for Aaa-rated countries.”
Source: Bloomberg