Moody's warns EU rating at risk of downgradeSeptember 4, 2012 - 09:44 AMT PanARMENIAN.Net - Moody's put the European Union on notice Monday, Sept 3, that its top-notch AAA rating is at risk of downgrade, cutting the outlook on the EU's creditworthiness to "negative" from "stable" because of the continent's ongoing debt crisis, according to CNNMoney. The move follows a similar action in July, when Moody's revised to negative the outlooks on Aaa-rated Germany and the Netherlands. The outlooks of France and the U.K. had previously been revised to negative. The four countries account for about 45% of the EU's budget revenue. "The creditworthiness of these member states is highly correlated, as they are all exposed, albeit to varying degrees, to the euro area debt crisis," Moody's stated. Moody's said it lowered the EU's outlook because it believed that the countries likely would not "prioritize the commitment to backstop the EU debt obligations over servicing their own debt obligations." The announcement comes at a crucial moment in the European debt crisis. The European Central Bank, which meets this week, is widely expected on Thursday to unveil details of a new bond-buying program for countries that agree to certain conditions. ECB President Mario Draghi, in an opinion article last week, argued that "exceptional measures" are justified under the ECB's mandate when financial markets are "influenced by irrational fears." The new bond-buying program would be primarily aimed at Spain and Italy, where bond yields rose to unsustainable levels in July. Borrowing costs for both countries eased in August, following Draghi's pledge to do "whatever it takes" to preserve the euro currency. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | About 173 million drams and more than 30 beneficiary funds. "The Power of One Dram" is 4 years old In June 2020, the exclusive joint corporate social responsibility initiative of Idram and IDBank "The Power of One Dram" was launched. Aliyev travels to Turkey at Erdogan's invitation On June 10, Azerbaijani President of Azerbaijan Ilham Aliyev will leave for Turkey on a working visit. CSTO budget “to be adjusted due to Yerevan’s non-payment of contributions” The CSTO budget for the current year requires adjustments due to the refusal of Yerevan to pay their share of contributions. Russia sends note of protest to Armenia over envoy’s trip to Ukraine’s Bucha Russia has sent a note of protest to Armenia over the visit of Vladimir Karapetyan and Tigran Ter-Margaryan to Bucha. |