Moody’s Investors Service released a report Monday, to lower the German “AAA” sovereign rating outlook from “Stable” to “Negative”, for the reason that the uncertainties brought about by the euro zone sovereign debt crisis is being enhanced.
At the same time, Moody’s also lowered its sovereign rating outlook for the Netherlands and Luxembourg, while maintained the “AAA” sovereign rating on Finland. Moody’s sovereign ratings on the Netherlands and Luxembourg are “AAA”.
Moody’s pointed out that Greece may exit the euro area; if this does happen, it will impact the euro-zone countries such as Spain and Italy. At the same time, even if the matter can be avoided, the other euro zone countries are more likely to need access to more comprehensive support, especially Spain and Italy.
Moody’s further noted that if the situation in the euro zone remains in the current state, then the members of the euro zone with higher sovereign ratings are likely to face the heaviest burden.