Moody’s Investors Service on Monday changed its outlook for top-rated Germany, the Netherlands and Luxembourg to negative from stable, warning that they may have to increase support for indebted euro zone states such as Spain and Italy.
Moody’s also cited an increased chance of Greece leaving the euro zone, which “would set off a chain of financial sector shocks … that policymakers could only contain at a very high cost.”
The agency affirmed Finland’s ‘Aaa’ rating and stable outlook, but it said all four countries were adversely affected by rising uncertainty about the outcome of the euro area debt crisis and the increasing likelihood that greater support would be needed by other euro area countries, most notably Spain and Italy.
Financial Post
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