Moody's the rating agency added to concerns and renewed fears that some European nations could loose their credit rating, where the rating agency clarified that despite the summit deal, pressures remain evident on the European credit ranking, and the agency will review the rating of the entire union in the first quarter of next year.
In substance, however, the communique offers few new measures, and does not change our view that risks to the cohesion of the euro area continue to rise, Moody's said in the weekly credit report.
As we announced in November, unless credit market conditions stabilize in the near future, our ratings of all EU sovereigns will need to be revisited. The communique does not change that view, and we continue to expect to complete such a repositioning during the first quarter of 2012, according to Moody's.
Amid the increasing pressure on euro area authorities to act quickly to restore credit market confidence, the constraints they face are also rising. The longer that remains the case, the greater the risk of adverse economic conditions that would add to the already sizeable challenges facing the authorities' coordination and debt reduction efforts. The Agency added.