Euro Zone Crisis
The euro zone crisis was triggered in 2009 when Greece's debts, left by its previous government, reached a record 300 billion euros, leaving the southern European economy with debt levels more than four times higher as a proportion of gross domestic product than the official euro zone cap of 60 per cent of GDP. Since the original problems were uncovered, Greece has been bailed out twice, and lenders have also had to rescue Ireland and Portugal. In the latter half of 2012. Cyprus also required a bailout.
French rate cut could hit eurozone rescue fund: Moody's
The rating agency Moody’s said on Tuesday that it was studying the impact of its cut of France’s top credit notation on the triple “A” ratings of eurozone rescue funds that are underpinned in part by France.
Moody’s ratings of the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM) were under negative watch, implying that they could be downgraded, the agency said in a statement.
Moody’s said it would consider in particular whether the support of other countries with “Aaa” ratings was strong enough to justify a continued top rating for the funds as well.
The “Aaa” notation is the highest rating available from Moody’s for such instruments.
Eurozone countries that still benefit from the “Aaa” rating include Finland, Germany, Luxembourg and the Netherlands.