Moody's Downgrades Spain, Warns France

Sarkozy vows to take bold action at debt summit
By Rob Quinn,  Newser Staff
Posted Oct 19, 2011 1:54 AM CDT
Protesters in Athens wave a Spanish flag.   (AP Photo/Lefteris Pitarakis)

(Newser) – Credit ratings in Europe are continuing to slide downward: Moody's has followed Standard & Poor’s lead and cut Spain's rating by two notches, warning that France could be next, reports the Washington Post. "Spain continues to be vulnerable to market stress and event risk," said the agency, noting that with the European debt crisis still unresolved, Spain's growth prospects aren't looking good.

France is keeping its triple-A credit rating for now, but Moody's says it is the weakest of Europe's triple-A nations, and could be hit hard by bailout obligations. France's finance minister vowed to do everything possible to avoid a downgrade, and Nicolas Sarkozy said he would press for bold action at this weekend's EU summit to address the debt crisis. "Allowing the destruction of the euro is to risk the destruction of Europe," the French president warned. "Those who destroy Europe and the euro will bear responsibility for resurgence of conflict and division on our continent."

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