Economic outlook: Ratings agency Moody’s has placed Luxembourg’s AAA credit rating on negative watch.
The ratings agency also placed Germany and the Netherlands, two other coutries with AAA ratings, on negative watch. It justified its move by saying there was “rising uncertainty regarding the outcome of the euro area debt crisis” and that even if the worst consequence of the crisis (a Greek exit) were avoided, the continued need for collective support would place an increasing heavy burden on the three top-rated euro zone members.
As a response, Jean-Claude Juncker issued a statement as president of the Eurogroup in which he said that the Moody's ratings "confirms the very strong rating enjoyed by a number of euro area Member States". Juncker went on to say that these countries continue to enjoy sound fundamentals. "Against this background, we reiterate our strong commitment to ensure the stability of the euro area as a whole."