Wednesday, 25 July 2012

German credit rating drops below Isle of Man

The international credit rating agency, Moody's, has put the German, Dutch and Luxembourgish economies on a negative outlook which threatens their AAA ratings.

Deutschland, Deutschland,
unter Insel Man
France and Austria have already been hit with negative outlooks from Moody's earlier this year.

The only countries left in Europe with a stable AAA rating are the Isle of Man, Denmark, Finland, Norway, Sweden and Switzerland.  Norway, Switzerland and the Isle of Man aren't members of the EU and the only €urozone country that has kept its AAA rating without a negative outlook is Finland which is hardly surprising given that Finland is the only €urozone country that has opposed fiscal union and bailing out Greece.

The latest effective downgrades from Moody's are in response to the increasing inevitability of the need to bail out Spain which will bankrupt even Germany.  As Spanish Treasury Minister, Cistobal Montoro, said in June: Spain can't be rescued.