Sept. 25 - Standard & Poor's EMEA Head of Sovereign Ratings, Moritz Kraemer, shares his view on risks to the sovereign ratings of Germany, France, UK, Spain and Greece.
ECB takes action the SM gets the green lights the eventual signs still unknown. But isn't enough to pull troubled states around the -- back from the brink of disaster. What next for Spain seeing are asking for bailout -- -- of them late so. We lost S and p.'s influential ratings chief. Europe the outlook is negative. But that's we have signal nothing go from. Wolf we can also have right now we would find it unlikely that the ratings would go down 22 non investment grade. In the in the near future obviously the future is uncertain and the challenges are huge and long lasting and politically very very difficult. To overcome. -- Spain does seek a bailout it may -- two months more important or austerity something -- them too familiar with. If you. Give the Greek government more time to adjusted to its. It's budget deficit it means that more financing needs will clock -- and in there interim. In strong it's a new government to ship will be key we have a new government which -- clearly state -- they want to change. The type of policy making now the budget for 2013 is the first concrete. And I think great step in and in in in any direction we have to see what that direction is that we have to see whether this coincides without expectation. Awful ongoing sort of adjustment of public finances in prompts Vermont while France's C units racing costs Germany has kept its AAA. Germany is an resilient position. Due to too many factors. But not least of it because of its comfortably external credit position. The the risks to that to -- to the to the raging in the German Economy at large would of course. Include issues like they devote a prolonged recession. Huge two ongoing adjustments and and other countries. And as a very export dependent economy Germany it will -- So be able to insulate itself from buffalo. I'm like Germany the -- You -- faces similar risk to its AAA rates it. UK is facing a long long got a little slump since he's the slump and we have to previously envisaged and that of course would. Put into question very much the strategy. As it has been around led by by the chancellor. So in short the face of the rocks economies still hangs in the -- despite its easing fears of -- eurozone breakup.