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Moody’s Cuts Italy, Spain, Portugal Ratings

From the Agence France-Presse:

Moody’s cuts ratings for Italy, Spain, Portugal

February 14, 2012

Moody’s has chopped the debt ratings of Italy, Spain and Portugal and put France, Britain and Austria on warning, saying they were increasingly vulnerable to the eurozone crisis

Those are three of the four PIGS. And we know what is happening to the ‘G’ — Greece.

The ratings agency cited the region’s weak economic prospects as threatening "the implementation of domestic austerity programs and the structural reforms that are needed to promote competitiveness."

Luckily, we have nothing to worry about when it comes to cutting spending or promoting competitiveness.

Moody’s also questioned whether Europe was pulling together adequate resources to deal with the crisis.

"To a varying degree, these factors are constraining the creditworthiness of all European sovereigns and exacerbating the susceptibility of a number of sovereigns to particular financial and macroeconomic exposures," it noted.

Austria, France and Britain all retained the top AAA rating but were put on negative outlooks, a warning that if conditions worsen they could be hit with full downgrades.

Which means, as far as Moody’s is concerned, the US currently has a better credit rating than most of Europe. (Though not according to Standard & Poor.)

Which is probably why the stock market is doing so well at the moment.

But just think how much better it would be doing if we would start being more financially responsible and cut down on our debt and grow our economy? The sky would be the limit.

Italy was cut one notch to A3 from A2; Spain two notches to A3 from A1, and Portugal one step to Ba3 from Ba2.

Slovakia and Slovenia both went down one step to A2, while Malta moved one step to A3…

Moody’s said it had limited the magnitude of the rating cuts due to the "European authorities’ commitment to preserving the monetary union and implementing whatever reforms are needed to restore market confidence."

It cited the agreement by EU leaders on a framework for disciplined fiscal planning as well as the measures already adopted to lower the risk of contagion in the region emanating from the most troubled countries

Which just proves that there really is a sucker born every minute.

This article was posted by Steve on Tuesday, February 14th, 2012. Comments are currently closed.

One Response to “Moody’s Cuts Italy, Spain, Portugal Ratings”

  1. P. Aaron says:

    It’s only ’cause we’re still paying our guys to print money.

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