FXStreet (Mumbai) – Speaking at an event in the UK’s capital, Douglas Renwick, senior director at the international credit ratings agency Fitch warned euro zone that they may not see favourable ratings unless they deal with their extremely high debt levels.
Renwick also added that he saw a broadly stable ratings trend across the single currency bloc, with a more positive outlook for peripheral nations and a more negative outlook for so-called “core” countries.
Key Quotes:
“There is a risk that — whether it is growth (that) is low for a long time or because public finances become looser — there is a risk that (debt) just stays high structurally in a lot of these countries.”
“If that were to be the case that means ratings may not fall back to their original pre-crisis levels anywhere near as quickly…or may not ever reach those pre-crisis levels.”
(Market News Provided by FXstreet)