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"[Moody's] 'positive' scenario carries very negative rating implications [for EU countries] in the interim period"
- Moody's Investors Service
Moody's Investors Service said on Monday that deteriorating debt crisis in the euro zone threatens all European government credit ratings and certain countries may soon lose access to market funding.
"While Moody's central scenario remains that the euro area will be preserved without further widespread defaults, even this 'positive' scenario carries very negative rating implications in the interim period," the agency said in a report.
Economist Tim Condon, head of research for Asia at ING, said the Moody's announcement was unlikely to surprise markets. "t's basically common knowledge that everything in Europe is at risk," he said. "Quite a few people are contemplating a euro zone breakup scenario."