Recession ending, but fiscal problems to linger longer: Moody's
Global credit rating agency Moody's on Tuesday warned that the fiscal crisis may remain for many more years in the US, Britain and 15 other top-rated countries though they are slowly coming out of the recession.world Updated: Dec 08, 2009 23:48 IST
Global credit rating agency Moody's on Tuesday warned that the fiscal crisis may remain for many more years in the US, Britain and 15 other top-rated countries though they are slowly coming out of the recession.
Many of these 17 nations had increased public spending since last year to boost their shrinking economies in the wake of the one of the worst financial crises in the history.
"The global macroeconomic and financial system crises may be close to an end, but the fiscal crisis in a number of Aaa-rated countries will likely last for several years to come," Moody's Investors Service said today in its outlook for the global economy.
Currently, the agency has the highest sovereign rating of 'Aaa' for these 17 countries.
According to the agency, the highest-rated countries like the US, Britain, France and Germany, would face challenges, emanating from the pace and sustainability of their economic growth in addition to future interest rates, "both of which affect these countries' ability to manage their significant debts they have assumed as a result of the crisis," the agency said in a statement.
However, Moody's Investors Service added that there is no immediate threat to the top rating of these 17 countries.