As the European debt crisis continues to worsen, Standard & Poor placed 15 members of the euro currency union on review for a possible downgrade. The U.S.-based credit rating agency said the review was 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.” The warning applies to AAA-rated Germany, France, the Netherlands, Austria, Finland and Luxemborg.
Two countries are unaffected by the notice—Greece, already at a high risk of default, and Cyprus, which was already under review. The review comes as a surprise to Germany, the most stable of euro countries, and also points to the severity of the crisis. The loss of AAA status in Europe’s strongest countries could have consequences for the European Financial Stability Facility.
