FYI.
– S&P Dares To Go There: Downgrades European Union To Negative Outlook (ZeroHedge, Aug 3, 2015):
Just a few short years after they dared to downgrade the US, S&P has unleashed their worst on Europe:
- *EUROPEAN UNION OUTLOOK REVISED TO NEGATIVE FROM STABLE BY S&P
- *S&P: EU TO AA+/NEGATIVE FROM AA+/STABLE – FOREIGN CURRENCY LT
We are sure this will be met by S&P office raids throughout Europe, litigation over somethhing or other, and denials broadly from any and every unelected member of EU’s elite… because “when it’s serious you have to lie.”
As Bloomberg reports,
Outlook revision reflects S&P’s expectation that the EU will provide first-loss guarantee support for financing connected to the Juncker Plan and further downward pressure on the average weighted rating on net budgetary contributors to the EU.
S&P also cites the EU’s repeated use of its balance sheet to provide higher-risk financing to EU member states (most recently including Greece), without the member states’ paying in capital
S&P sees greater than one-in-three likelihood of a rating change on the EU during the next two years EU’s AA+ rating affirmed.