Moody’s Cut European Credit Ratings

Credit Referencing Agency Moody’s have downgraded the credit rating of several Eurozone members, including Italy, Spain and Portugal.

Slovakia, Slovenia and Malta also saw their ratings lowered.

Great Britain, France and Austria avoided the downgrade but did see their status changed to “negative outlook”  which implies a 30% chance of a downgrade over the next 18 months.

Amendments to Ratings

• Austria – Remained at Aaa – Outlook changed to Negative
• France - Remained at Aaa – Outlook changed to Negative
• Italy – Lowered from A2 to A3 – Down One Notch
• Malta – Lowered from A2 to A3 – Down One Notch
• Portugal – Lowered from Ba2 to Ba3 – Down One Notch
• Slovakia – Lowered from A1 to A2 – Down One Notch
• Slovenia – Lowered from A1 to A2 – Down One Notch
• Spain – Lowered from A1 to A2 – Down Two Notches
• UK - Remained at Aaa – Outlook changed to Negative

As the figures above show, Spain saw the sharpest fall in with the countries credit rating dropping two notches.

Speaking to the BBC Chancellor George Osbourne said:

“It was a reality check for the whole political system that Britain has to deal with its debts, that we can’t waver in the path of dealing with our debts.”

“This is yet another organisation – in this case a credit ratings agency – warning Britain that if we spend or borrow too much we’re going to lose our credit rating.”

As the UK faces the realisation of the severity of it’s debt situation, for many businesses the reality of debt recovery, be it through unpaid invoices, overdue accounts or any other means is just as severe. Any company who has an issue with late or non-payers should contact Federal Management immediately on 0844 875 4022 for immediate assistance in recovering the outstanding amount.

Tags: credit rating, credit referencing agency, eurozone, Moody's