December 6, 2011
Markets fell earlier today as credit rating agency Standard and Poor's (S&P) threatened to downgrade 15 eurozone states.
Announced late last night, the statement has caused further tensions in the ongoing eurozone crisis. Germany, France and Austria are among the states put on long-term ratings of creditwatch negative.
Italy, which have already had their rating cut earlier this year by S&P are also on the list issued by the major credit rating agency.
The decision has been attacked by Governor of the Bank of France and ECB policymaker Christian Noyer. The Guardian business live blog reports his reaction:
The agencies were one of the motors of the crisis in 2008. Are they becoming a motor in the current crisis? That's a real question we all need to think about.More
When you look at the way S&P formulated its argument, you can see that they have changed their methods. The methodology has become much more political and less linked to economic fundamentals.
No comments:
Post a Comment