Standard & Poor’s Said to Put Euro Zone on Downgrade Watch
Standard & Poor’s is expected to put Germany and France on downgrade watch as the debt crisis prompts a review of all 17 euro nations, according to two officials familiar with the S&P decision.
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The euro zone’s six AAA rated countries — Germany, France, the Netherlands, Austria, Finland and Luxembourg — will be placed on “creditwatch negative” pending the result of European summit on December 9, the officials said on condition of anonymity, as the decision has yet to be announced.
The euro reversed its gains and markets moved lower after the Financial Times reported earlier today that the ratings agency planned to put the entire euro zone on negative outlook, without citing the source of its information.
If placed on “creditwatch negative,” that would mean the countries have a 50% chance of being downgraded within the next 90 days.