| Posted: 09/03/2012 6:30 pm
SYDNEY, Sept 4 (Reuters) – Moody’s Investors Service has changed its outlook on the Aaa rating of the European Union to negative, warning it might downgrade the bloc if it decides to cut the ratings on the EU’s four biggest budget backers: Germany, France, UK and Netherlands.
The move will add to pressure on the European Central Bank to provide details of a new debt-buying scheme to help deeply indebted euro zone states at its policy meeting on Thursday.
Back in July, Moody’s changed its outlook for Germany, the Netherlands and Luxembourg to negative as fallout from Europe’s debt crisis cast a shadow over its top-rated countries. The outlook on France and the UK are also negative.
“The negative outlook on the EU’s long-term ratings reflects the negative outlook on the Aaa ratings of the member states with large contributions to the EU budget: Germany, France, the UK and the Netherlands, which together account for around 45 percent of the EU’s budget revenue,” the ratings agency said.