Tag: credit rating agencies

Standard & Poor's has cut Hungary's long-term credit rating by a notch to BB+ to "junk", citing unpredictable policies, adding to pressure on the government to change its unorthodox policy and clinch a deal with international lenders.

The European Commission will unveil plans on Tuesday (15 November) to further tighten controls on credit rating agencies, but will fall short of proposing an alternative European agency due to the lack of “credibility” such an institution would carry, according to the latest draft seen by EurActiv.

Ireland's debt has been downgraded to junk status by rating agency Moody's, which said the country was likely to need further rounds of financing before it could return to international capital markets. Meanwhile, Italy's borrowing costs soared to their highest level in more than a decade, sparking new doubts about the euro zone's ability to right itself.

Financial markets piled pressure on heavily indebted eurozone countries on Monday (23 May) as rating agencies stoked new concerns over Italy and Belgium.

EU finance ministers will discuss this week how they might penalise rating agencies that pass inappropriately harsh judgements on countries, a senior EU politician said on Tuesday.

EU Internal Market Commissioner Michel Barnier has told EU finance ministers today (18 May) how he plans to put credit rating agencies under the thumb of an EU agency, blaming the uncertainty in financial markets on the downgraded ratings of Greek and Portuguese debt.

Moody's rating agency yesterday (6 May) warned of a severe risk of contagion as it expects the euro zone's debt crisis to destabilise the banking sector in several EU countries.