Europe If Recession &Nbsp; S & P Or Downgrading Five Countries

2011/10/22 15:00:00 38

Rating agencies

S & P reports that if Europe slips in

decline

And if the government borrows up, the agency may reduce the rating of five European countries, including France, by one or two.

class interval

。

S & P's stress test report assesses the ability of the European Union and the International Monetary Fund (IMF) to support the euro area under two possible circumstances - two recession and high interest rate recession.

"In these two cases, the sovereign rating of France, Spain, Italy, Ireland and Portugal may be reduced by one or two levels," the S & P said in a October 20th report.

S & P said that the most severe economic scenario could also lead to capital restructuring in a large number of banks in Spain, Italy and Portugal, adding that if the situation worsens beyond expectations, current support will be added.

mechanism

Maybe not enough.

"France's rating is likely to be downgraded from 'AAA' to 'AA+' because of the worsening fiscal situation, even though the pressure is mild," said analysts at S & P.

"In the future, we believe that the economic growth in the next 18 months will be very weak, and the economy of the eurozone next year will be very weak.

Increase

The average is 1.0-1.5%, "S & P said.