Report
Rating agencies do not like to precede financial markets
Rating agencies do not like to downgrade a borrower ’s rating (in this Flash we are looking at sovereign borrowers in the euro zone) before financial markets themselves have penalised that borrower by demanding higher interest rates. This behaviour by rating agencies was clearly seen during the euro-zone crisis from 2010 to 2014 and can be seen today in relation to the same countries that were downgraded during that crisis (Spain, Portugal and Greece). Since financial markets are not currently penalising the euro-zone countries with the biggest public finance problems (Italy, France), it is highly unlikely that the rating agencies will downgrade these countries.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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