More credit downgrades in Europe

Moody's changes outlooks on Germany, Netherlands, Luxembourg

Moody's Investors Service has changed the outlook for the ratings of Germany, Luxembourg, and the Netherlands to negative from stable, citing the uncertainty about the eurozone’s ongoing debt crisis.

Press TV,

23 July, 2012

“The level of uncertainty about the outlook for the area and the potential impact of plausible scenarios on member states, are no longer consistent with stable outlooks,” the rating agency said in a statement on Monday.

Moody's also pointed out that the risk of a Greek exit from the eurozone had risen since the beginning of the year and the burden of support for the indebted states would fall most heavily on the eurozone's top-rated states.

After the move, Germany's finance minister released a statement, saying that Moody’s decision to revise Germany’s Aaa-ratings did not take away the country’s role as an anchor of stability in the eurozone.

“By means of its solid economic and financial policy, Germany will retain its ‘safe haven’ status and continue play its role as the anchor in the euro zone responsibly,” Wolfgang Schaeuble said.

Many EU member states have been struggling with a deep economic stagnancy since the bloc’s financial crisis began about five years ago, forcing some of the most affected nations to adopt harsh austerity measures to be eligible to get the EU bailouts.