Negative Outlook for Germany, Netherlands, Luxembourg

Boskowski

Moody downgrades the outlook for Germany, Netherlands, Luxembourg from 'stable' to 'negative'.

http://www.reuters.com/article/2012/07/23/us-ratings-moodys-germany-idUSBRE86M1D320120723

While many people in Germany and elsewhere would dismiss the rating agencies themselves as questionable and exposed to 'agendas' their verdict bears real weight in the financial world no doubt. Moody's argue the uncertainty about Greece and to a certain extent Spain and Italy casts doubts over the more stable countries as they would have to carry the brunt of any possible fallout.

The burden of that support would fall most heavily on the euro zone's top-rated states, it said.

I'm surprised it took this long to be honest.

Franticfrank

I certainly am sceptical of the credit rating agencies but this move doesn't really come as too much surprise to me. Take a look at statistics about Germany's contribution to the ESM and its 27%...helping out Italy and Spain for the forseeable future will have its effects. Still, its just Moody's so far, and not the other two agencies. Maybe its time to get worried when they follow suit and a downgrade actually does occur.

eire4

So called rating agencies like Moody's are a disgrace. They claim to be this neutral by stander just giving out fair ratings. Yet they are paid by the very companies they claim they rate neutrally. One of their own former vice presidents talked earlier this year about how so called analysts would be pressured and or intimidated by clients to give them the credit ratings they want. Both Moody's and Standard and Poors have classified risky investments as safe and failed to give any warnings when they knew bad things were happening. They have absolutely no creditability at all.

Now the outlook for Germany, Netherlands and Luxembourg may indeed be negative but Moodys opinions well all I can do is laugh.