Russia's Credit Rating Lowered

Cites woes with the euro, not Italy itself

(NEWSER) - Moody’s followed Standard & Poor’s lead and downgraded Italy’s credit rating yesterday, slashing it from Aa2 to A2 and setting its outlook to “negative,” meaning it envisions more cuts to come. Moody’s said its decision wasn’t based on Italy’s government finances, but on worries about its economic growth and, more importantly, the erosion of confidence in the euro, the Guardian reports. More»

(NEWSER) - Stocks plummeted at today’s open after Standard & Poor’s warned it might downgrade the UK’s credit rating, the Wall Street Journal reports. The Dow tumbled 126 points, while the Nasdaq and S&P each fell more than 1%. Investors now fear other major economies, including the US, could face downgrades. Job data were mixed, with initial claims falling 12,000, but continuing claims climbing 75,000 to a record 6,662,000. More»

As Greece struggles to restructure debt

(NEWSER) - Standard & Poor's will likely downgrade Greece's rating to "selective default" after its debt restructuring, the rating agency said at a Bloomberg event today—though it adds that the move might not destroy the European Union's credit. "It's not a given that Greece's default would have a domino effect in the eurozone," the chairman of S&P's sovereign rating committee said, according to Reuters . More»

Announcement likely after markets close

(AP) - A person familiar with the matter says Standard & Poor's is examining the credit rating of all 17 euro zone countries for a possible downgrade as the continent's debt crisis lingers. The person said today that S&P is likely to make an announcement on putting the euro countries on "credit watch" after the closing of US markets today. The person was speaking on condition of anonymity because of the sensitivity of the matter. The threat to downgrade all 17 euro zone countries—including the ones that enjoy the stellar AAA-rating—comes ahead of a crucial summit of EU leaders later this week. More»

Cites 'protracted political uncertainty'

(AP) - Standard & Poor's is lowering its long-term sovereign credit rating for Belgium, citing a threat to exports and the country's lack of a permanent government. In a sign that financial contagion is spreading across Europe, the agency cut Belgium's credit rating from AA+ to AA. Belgium has been without a permanent government for 530 days. More»