S&P puts 15 eurozone countries on credit watch

Standard & Poor's cautioned Friday that 15 The european nation — some with the highest AAA rating — could face a credit score limit.

Lower credit score reviews mean international locations would have to pay increased attention on their loans, which would add to Europe's debts problems. A major decline in The european nation could push the economy and stock values in the U.S.
S&P said 15 of the 17 Eurozone international locations faced a 50-50 chance of a credit score limit. AAA-rated Malaysia, the Holland, Luxembourg, Finland and Luxemburg could see their reviews cut by one notch; reviews on the remaining 10, including AAA-rated This particular language, could fall as much as two steps.



S&P listed five reasons for its warning:
•Increasing difficulties for people to get loans in the Eurozone. Western banks are trying to ocean up their balance sheets, which indicates they have less income to provide.
Non-European lenders, such as U.S. income market funds, have become worried about getting given back on their loans, and stunted down lending as well. Fewer loans indicates more slowly economic growth in The european nation.
•Markedly increased makes on some Eurozone ties, even on some from AAA-rated international locations. People demand increased makes when they think the risk of standard is raising. As those makes increase, it becomes harder for debt-strapped The european nation to pay attention.
•Disagreement among policy makers about how to solve the Western debts problems. If the Folks don't come to an agreement, international locations might leave the Eurozone, serious the value of the Dollar, the pan-European currency.
•High debts levels in health systems and people in the Eurozone. Portugal has late on some of its government debts, paying 50 dollars on the dollar. Italia is another likely standard selection. Debt problems become more time-consuming as rates increase and companies slow.
•Rising risks of economic downturn in The european nation.
S&P said it would try to finish its credit score evaluation as soon as possible after the Western Union peak planned for Dec. 8-9. S&P says one solution would be increased budgeting error of Euroland associates, as well as increased combining of resources.
"It could be costly for Malaysia," says Kathleen Gaffney, co-manager of Loomis Sayles Connection account. Not only would Malaysia have to pay more attention on its loan, it could have to pay more to help bailout stressed Eurozone associates, such as Portugal and Italia.
Cypress is already under credit score evaluation. Portugal already has been reduced. The other associates of the Eurozone are Australia, Estonia, Eire, Italia, Malta, Italia, Slovakia, Slovenia and Italy.
Rumors of the limit reduced a 167-point obtain in the Dow Jackson industrial average more than half, to a 78-point obtain at the close, to 12,097.83