- UBS AG
Moody's Investors Service downgraded Germany's, the Netherlands' and Luxembourg's Aaa rating to negative with increasing risks of Greek exit from the region as well as likelihood that troubled Italy and Spain will require more financial support being the main reasons for the rating cut.
With "Germany's central position in the euro zone, the idea that it could be somehow isolated from the general deterioration of the euro area is not realistic," said Nicolas Veron, Senior Fellow at Bruegel, a Brussels-based research organization. "From this standpoint, the downgrade sounds logical."
"The euro is set to continue falling across the board," said Mansoor Mohi-Uddin, Currency Analyst at UBS AG. "Germany's ratings outlook downgrade on Monday only adds to such pressure."
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