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Monday, February 13, 2012

Europe Update: Downgrades, Greek Aid may be conditional

by Calculated Risk on 2/13/2012 08:57:00 PM

From the NY Times: 6 European Nations Get Downgrades

Moody’s Investors Service cut the debt ratings on Monday of six European countries, including Italy, Spain and Portugal, and became the first big ratings agency to switch Britain’s outlook to negative.
Moody’s downgraded Spain to A3 from A1 with a negative outlook; Italy to A3 from A2 with a negative outlook; and Portugal to Ba3 from Ba2 with a negative outlook. The agency also lowered the ratings for Malta, Slovakia and Slovenia.

Moody’s revised to negative its outlook on Britain, France and Austria, which have the agency’s top Aaa rating.
Via the Financial Times Alphaville, here is the Moody's document: Moody's adjusts ratings of 9 European sovereigns to capture downside risks

From the Financial Times: EU tries to finalise €130bn Greek bail-out. The FT reports that if Germany is not convinced that Greece is taking action, then the bail-out might be given "conditional approval" and be reassessed at the next week.
In that case, ministers would only give the go-ahead for a critical part of the new bail-out, a €200bn restructuring of privately held debt which must begin in a matter of days ...
excerpt with permission
So the next key date is Wednesday (they are running out of time for the "Private Sector Involvement"), and then another key date next week if the approval is conditional.