Moody’s Investors Service on Monday changed its outlook for top-rated Germany, the Netherlands and Luxembourg to negative from stable — even as it reaffirmed Finland’s ‘Aaa’ rating and stable outlook. It warned that the trio may have to increase support for indebted euro zone states such as Spain and Italy.
Moody’s also cited heightened chances of Greece leaving the euro zone, which “would set off a chain of financial sector shocks...that policymakers could only contain at very high cost.”It said its actions on Germany, the Netherlands and Luxembourg mean it now has negative outlooks on all the countries "whose balance sheets are expected to bear the main financial burden of support."
Finland escaped a negative outlook partly due to its small and domestically oriented banking system and its limited trade links with EU, Moody’s said.
Standard & Poor’s has a stable outlook for Germany but negative outlooks for Holland, Luxembourg and Finland while Fitch gives all stable outlooks.