Saturday, October 11, 2014

Euro-zone: Only Germany and Luxembourg with AAA rating – THE WORLD

Euro-zone: Only Germany and Luxembourg with AAA rating – THE WORLD

Fewer and fewer countries in the Euro-zone can still have top ratings. The rating agency Standard & amp; Poor’s withdrew Finland now the highest credit rating AAA. Now there are two countries that are measured at all three major agencies so: Germany and Luxembourg

S & P sees France critical and threatening. a downgrade. Although the Agency shall evaluate the creditworthiness of the country with the second largest economy in the euro zone after Germany continued with AA. But the outlook fell to negative, signifying a likely downgrade.

Nokia and paper crisis burden the country

The outlook for Finland’s new rating of AA + is stable. The country could the economic weakness in Russia, but particularly enforce any problems in the euro zone, a statement said. The dwindling demand from abroad is exacerbating this, the structural problems of the country, said S & P

Since the financial crisis of 2008, Finland is struggling to earlier growth rates. return. The flagship of the country, the mobile pioneer Nokia, it however failed to keep up with the competition from Apple and Google step, and finally sold in April, the mobile phone business to Microsoft.

In addition, decreased due to digitizing paper demand in Europe, which in turn leaves a distinct mark at companies such as UPM-Kymmene and Stora Enso.

Moody’s and Fitch still keep silent

The loss of the top rating becomes apparent under certain circumstances in the capital market. The lower the credit rating of a country is classified, the higher the interest rates will have to pay tend to issue new bonds the government. Experiences in other countries show, however, that this need not necessarily be the case for countries with relatively good grades.

Rate The other two major agencies, Moody’s and Fitch Finland still the best mark. Although Analyst Aki Kangasharju money from home Nordea Markets expects reactions on the market on Monday. “The downgrade came earlier than expected.” The additional burden for Finland he sees but only at 20 to 30 million euros

comparison:., The debt of the country amounted to 100 billion euros. Nothing will change in fiscal policy, said Finance Minister Antti channel.

“Our growth prospects have deteriorated, the reasons are known, and we have already taken action.” Even France threatens further gradation

France has long been no longer the club the sample countries. S & P now threatened with another downgrade. The fiscal position of the government in Paris was getting worse given the economic outlook, said the rating agency. A strong recovery in the French economy could fail.

The financial situation of the state could therefore deteriorate further after 2014. In September, France had declared that fail to meet the deadline set by the EU in terms of deficit and until 2017 to drop below the threshold of three percent of gross domestic product.

Last year, the EU finance ministers of the government in Paris had a delay until 2015 granted .

The German AAA rating is considered safe

Germany has Standard & amp; Poor’s for the time being nothing to “fear”. In July, the leading credit rating agency has the top score AAA confirmed. The country enjoys the confidence of global investors. Measured in terms of premiums for credit default swaps, Germany is considered one of the five strongest nations in the world.

Despite the recent rather disappointing economic data, the actors quantify the probability of bankruptcy within a timeframe of five years to less than two percent.

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