Moody's intends to lower ratings throughout the eurozone International rating agency Moody's threatens to reduce the ratings of all the eurozone countries, due to the escalating debt crisis and financing problems.
The agency still does not expect mass bankruptcies of the eurozone, but even with this "positive" scenario, the further reduction of ratings of individual states and even of the eurozone as a whole is quite possible, RBC reports.
Agency experts suggest that the crisis has still not been overcome because of "institutional deficiencies". They are inclined to believe that the plans of politicians to resolve the crisis will be put into practice only after a series of shocking events. This in turn may lead to the fact that more countries will be deprived of the ossibility of refinancing on the capital market and require new assistance programs, Moody's warns.
Moody's makes no secret of its dissatisfaction with the performance of European politicians: without the necessary measures to stabilize markets the future growth of credit risk is inevitable. In order to restore the confidence of markets, policymakers must act quickly and decisively. "In the absence of major initiatives we will e standing at the line beyond which the rating of the whole eurozone will be called into question," analysts of Moody's said, noting that this could happen in the first quarter of 2012.
