Wednesday, September 5, 2012

Moody's threatens to slash EU's 'AAA' credit rating unless UK and other top members get their act together

Britain’s coveted AAA credit rating was under renewed pressure last night after a leading international agency threatened to downgrade the entire European Union.

Moody’s Investors Service cut the outlook on the EU’s AAA rating to ‘negative’ – warning the union could be stripped of its top notch credit score if the eurozone debt crisis escalates.

It said the decision reflected worries over the finances of Europe’s chief paymasters – Germany, France, the UK and the Netherlands – which supply nearly half of EU budget revenues.

The agency said: ‘It is reasonable to assume that the EU’s creditworthiness should move in line with the creditworthiness of its strongest key member states.’

The intervention piled pressure on eurozone leaders and the European Central Bank to tackle the three-year-old debt crisis which threatens the single currency. Read More