S&P; puts 15 euro zone nations on negative watch

December 6th, 2011 - 2:36 pm ICT by IANS  

New York, Dec 6 (IANS) Standard and Poor’s has put 15 eurozone nations, including the area’s six AAA-rated countries, on “CreditWatch negative” due to deepening economic and political turmoil in the region, meaning there is 50 percent chance for these countries to be downgraded within the next 90 days.

In its latest statement Monday, S&P; said: “The CreditWatch placements are prompted by our belief that systemic stresses in the eurozone have risen in recent weeks to the extent that they now put downward pressure on the credit standing of the eurozone as a whole.”

These systemic stresses, according to the rating agency, stem from tightening credit conditions, higher risk premiums, continuing disagreements among European policy makers, high levels of government and household indebtedness and rising risk of economic recession.

According to the S&P;, their credit ratings may be cut depending on the result of the key EU summit Dec 9, reported Xinhua.

Meanwhile, the S&P; maintained the CreditWatch negative status of its long-term rating on Cyprus and placed its short-term ratings on CreditWatch with negative implications, while the ratings on Greece have not been placed on CreditWatch.

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