Moody's: Greek euro exit threatens currency's existence

Reuters
June 8, 2012

Moody's Investors Service said on Friday that a Greek exit from the euro could pose a threat to the currency's existence.

In addition, developments in Spain's banking sector that may require a European rescue package have negative credit-rating implications for the sovereign, Moody's said in a statement.

"Were Greece to leave the euro, posing a threat to the euro's continued existence, we would need to review all euro-area sovereign ratings, including those of the Aaa nations," the rating agency said.

A Greek euro-zone exit would particularly affect the sovereign ratings of Cyprus, Portugal, Ireland, Italy and Spain, Moody's said.

"Some (other) members of the European Union could also be affected, given the strong financial and trade linkages that exist between the members of the monetary union and the European Union," Yves Lemay, a Moody's sovereign credit analyst in London, told Reuters.

More