This is Europe!

I will comment a bit later. For now, take a look at the table below.

Country Moody’s Fitch S&P
Austria Aaa AAA AA+
France Aaa AAA AA+
Belgium Aa1 AA+ AA
Czech Republic A1 A+ AA-
Estonia A1 A+ AA-
Slovenia Aa3 AA- A+
Portugal Ba2 BB+ BB
Denmark Aaa AAA AAA
Finland Aaa AAA AAA
Germany Aaa AAA AAA
Luxembourg Aaa AAA AAA
Netherlands Aaa AAA AAA
Sweden Aaa AAA AAA
United Kingdom Aaa AAA AAA
Slovakia A1 A+ A
Spain A1 AA- A
Malta A1 A+ A-
Poland A2 A- A-
Ireland Ba1 BBB+ BBB+
Italy A2 A+ BBB+
Bulgaria Baa2 BBB- BBB
Lithuania Baa1 BBB BBB
Cyprus Baa3 BBB BB+
Hungary Baa3 BB+ BB+
Latvia Baa3 BBB- BB+
Romania Baa3 BBB- BB+
Greece Ca CCC CC
Sources: Moody’s, Standard & Poor’s, Fitch

Sources: WSJ.com

4 thoughts on “This is Europe!

    1. @Sergiu
      I do not find any value in asking if the rating agencies are right or wrong. It is a done deed and it will have real implications for investors and their portfolios.
      ON the other hand what I find ridiculous is the belief that there are any real AAA assets out there in a world where bad investments have not been acknowledged but only hidden under a big pile of public cash.

      1. I think the ratings should reflect the markets conditions. I dont find normal a situation where two countries with the same rating have a 2% (or more) yield spread at 10y. Furthermore, the rating agencies should react more promptly in order to improve their reliability. The case of Italy is clearly an exemple of how the rating agencies undermine their credibility. S&P’s decision meets the reality of markets but it comes a bit too late, hence the impact on markets was limited.

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