Egan-Jones cuts Austrian, Dutch sovereign ratings
NEW YORK, July 9 |
NEW YORK, July 9 (Reuters) - Credit rating agency Egan-Jones on Monday cut the sovereign ratings for both Austria and the Netherlands, citing the ongoing euro zone sovereign debt crisis and the help those countries will provide to prop up fellow members of the monetary union.
The agency lowered Austria's rating to A from A-plus and cut the rating on the Netherlands to A from AA-minus. Both ratings have a negative watch.
Northern European countries will absorb the cost of shoring up ailing neighbors, Egan-Jones said in separate statements on each rating action.
And with Spain and potentially Italy looking for support, "two major economies will switch from providers to users of funds. Our view is that the longer the euro crisis continues, the lower the ultimate recoveries," the statements read.
The euro zone sovereign debt crisis has roiled international markets for more than two years, with investors worried that the region's problems will drag on global growth for years to come.
Moody's Investors Service rates Austria Aaa with a negative outlook. Standard & Poor's rates the nation AA-plus, also with a negative outlook. Fitch Ratings has a AAA rating for Austria, with a stable outlook.
The Netherlands is rated AAA by both Standard & Poor's and Fitch Ratings, with a stable outlook from Fitch and a negative outlook from S&P. Moody's Investors Service rates the country Aaa, with a stable outlook.
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