News Ratings of France, Spain, Austria, Portugal, Italia, Slovakia degraded

N_Molson

N_Molson

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Standard & Poors is very probably going to officially announce this evening the downgrade of France, Spain, Austria, Portugal, Italy, Slovakia ratings.

The French Minister of Budget confirmed that France would now be rated AA instead of AAA. It is still unknown if it will be AA or AA-. No panic on the Paris stock market, because this event was anticipated since several months (CAC40 closed at -0.11%).

Germany, Belgium (?), Luxemburg, Danemark, Scandinavia & UK keep their AAA+.

Spain, Portugal, Italy, Slovakia could lose as much as 2 "notches".

The major consequence of those new ratings is that all the affected countries will suffer higher interest rates to take loans.

1629543_5_825c_notations-financieres-des-pays-europeens.gif


NYT : French Rating Cut; More Debt Downgrades Are Expected
 
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Yes, another consequence is that the EUR/USD rate is falling (which is rather good for UE exports).
 
Also, the whole ratings finally get sane.

The rating for Spain was not corrected because of the future outlook for example, but because its regions had been rated wrong and too good for years. The new conservative government in Spain pretends this is all the fault of the socialists, but actually, the problem was caused by them: The 14 regions(eq. State) of Spain, that are bankrupt or almost bankrupt now, had been ruled by the conservative party for decades now.

Also, the interest rates of the loans have only little in common with the ratings. When Spain had AAA rating, it had to pay higher loans than today.
 
to clear out that question mark in the first post , Belgium was degraded roughly a month ago, from AAA to AA+, if i recall correctly. :thumbup:
 
More details have been announced overnight :

Unchanged rating :

Germany : AAA, stable perspective

Finland : AAA, negative perspective

Rating downgraded by one "notch" :

France : AAA -> AA+ (negative perspective)

Austria : AAA -> AA+ (id.)

Slovenia : A+ -> A (id.)

Slovakia : AA- -> A+ (stable perspective)

Malte : A -> A- (negative perspective)

Rating downgraded by two "notches" :

Spain : AA- -> A (negative perspective)

Italy : A -> BBB+ (id.)

Portugal : BBB- -> BB (id.)

Cyprus : BBB -> BB+ (id.)

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Except Germany & Slovakia, the ratings of all the countries of the EuroZone are under "negative perspective", so further downgrades could occur this year (according to S&P, France has 33% chances to get downgraded again this year).
 
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It is funny that Estonia has just a AA- rating, despite them having rock solid budgets and a growing economy.
 
Tic,Toc,Tic,Toc.
Few days and Greece will pop out from Euro.
Few months and Portugal and italy wil be out too...
(Unofficially), chain reaction has started.
 
orbekler said:
Tic,Toc,Tic,Toc.
Few days and Greece will pop out from Euro.
Few months and Portugal and italy wil be out too...
(Unofficially), chain reaction has started.
Click to expand...

Do you want to bet on that? ;)
 
Ghostrider said:
All bets better be in Pokémon collectible cards. It's the only thing that is going to have any value whatsoever in short time.
Click to expand...

I prefer the hardest currency, tools. :lol:
 
I take gold, silver, platinium, even copper or iron, you always find a use to those ;)

Uranium & oil, too. Weapons are also accepted.
 
sad:oh:
 
N_Molson said:
I take gold, silver, platinium, even copper or iron, you always find a use to those ;)

Uranium & oil, too. Weapons are also accepted.
Click to expand...

You got it.
But at least paper euros will be still good to feed the wood stove. :lol:
 
orbekler said:
You got it.
But at least paper euros will be still good to feed the wood stove. :lol:
Click to expand...

Well, if you say so. could be a bit expensive for heating.

The first ten years with the Euro had been better for Germany's economy than the best ten years with the Mark. And it does not look different in other countries. Including Greece actually.

It is not just done by saying "End the Euro" - the debts of the governments will remain in the new currency. Changing the currency to fix debts is a pretty stupid plan, it had never worked positive.
 
Urwumpe said:
Changing the currency to fix debts is a pretty stupid plan, it had never worked positive.
Click to expand...

And still, this is what they do every single time. So either they come up with something valuable to put as collateral for their debts or they'll just come back to national currencies with the intention of inflating their way out of debt.
History tells us that even if they go with the former, they'll just print way more money than the value of collateral.
 
Jarod said:
And still, this is what they do every single time. So either they come up with something valuable to put as collateral for their debts or they'll just come back to national currencies with the intention of inflating their way out of debt.
History tells us that even if they go with the former, they'll just print way more money than the value of collateral.
Click to expand...

Precisely. and kick 99% of the citizens in the country into real poverty (not the only one Ferrari poverty of Italian millionaires), while the 1% that does not depend on the national currency will prosper.

Greece does also not have many natural resources that could reduce the impact of the national currency switch on the import prices.

For everyone else in the EU kicking Greece out of the Eurozone could really fix some problems, for example the problem of responsibility, but for the Greek, it would be a disaster. Also we can't kick them out after ignoring their budget problems for too long.
 
Urwumpe said:
For everyone else in the EU kicking Greece out of the Eurozone could really fix some problems, for example the problem of responsibility, but for the Greek, it would be a disaster. Also we can't kick them out after ignoring their budget problems for too long.
Click to expand...

I don't know if kicking Greece out of the Eurozone would have any effect on the euro because of the exact same scheme in all EU countries. And I'm sure that the greek government would be the one quitting the euro and putting its citizens in poverty, that's what it started to do, I see no reason to expect a course correction.
 
I would suggest to all euro-enthousiasts and their weak debating points (like euro itself), to read to this Vladimir Bukovksy ( [ame="http://en.wikipedia.org/wiki/Vladimir_Bukovsky"]Vladimir Bukovsky - Wikipedia, the free encyclopedia[/ame] ) interview made in 2005:

http://www.brusselsjournal.com/node/865

Former Soviet Dissident Warns For EU Dictatorship

...PB: But all these countries that joined the European Union did so voluntarily.

VB: No, they did not. Look at Denmark which voted against the Maastricht treaty twice. Look at Ireland [which voted against the Nice treaty]. Look at many other countries, they are under enormous pressure....

...It is a trick for idiots. The people have to vote in referendums until the people vote the way that is wanted. Then they have to stop voting. Why stop? Let us continue voting....
 
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