Hoocoodanode? - Pepe
WASHINGTON (MN) The United States, the United Kingdom, France and
Germanys distance to downgrade has been further reduced in light of
their ongoing fiscal challenges, Moodys warned Tuesday in its
quarterly review of triple-A rated sovereign countries.
That said, those countries remain well positioned based on a
forward-looking assessment of their debt dynamics and debt
affordability, Moodys said in its Aaa Sovereign Monitor.
The rating agency is now noting that the largest triple-A rated
European countries have already started implementing fiscal tightening,
closing the debate on the timing of fiscal consolidation.
In the U.S., a strategy for debt stabilization is still in the
early stages of being developed, Alexander Kockerbeck, Vice President
and Senior Credit Officer in Moodys Sovereign Risk Group.
So overall, the challenges have slightly shifted from a few months
ago, with Moodys highlighting growth revival as the first challenge
given that fiscal tools are no longer effectively at the countries
disposal.
Moodys hence expects a shift to micro-economic policies to
stimulate growth, such as labor supply therefore output
expansion.
The second challenge is to regain or preserve access to affordable
funding through credible medium-term fiscal adjustment programmes,
Kockerbeck said.
That necessary albeit not sufficient prerequisite is
especially true for Europe to maintain control over debt dynamics.
Third, Moodys stressed the need to address medium- and long-term
fiscal challenges particularly those resulting from the ageing of
their populations quicker.
The analyst noted indeed that a further consequence of the crisis
is the reduced time available for governments to confront those
challenges.
Forexlive
WASHINGTON (MN) The United States, the United Kingdom, France and
Germanys distance to downgrade has been further reduced in light of
their ongoing fiscal challenges, Moodys warned Tuesday in its
quarterly review of triple-A rated sovereign countries.
That said, those countries remain well positioned based on a
forward-looking assessment of their debt dynamics and debt
affordability, Moodys said in its Aaa Sovereign Monitor.
The rating agency is now noting that the largest triple-A rated
European countries have already started implementing fiscal tightening,
closing the debate on the timing of fiscal consolidation.
In the U.S., a strategy for debt stabilization is still in the
early stages of being developed, Alexander Kockerbeck, Vice President
and Senior Credit Officer in Moodys Sovereign Risk Group.
So overall, the challenges have slightly shifted from a few months
ago, with Moodys highlighting growth revival as the first challenge
given that fiscal tools are no longer effectively at the countries
disposal.
Moodys hence expects a shift to micro-economic policies to
stimulate growth, such as labor supply therefore output
expansion.
The second challenge is to regain or preserve access to affordable
funding through credible medium-term fiscal adjustment programmes,
Kockerbeck said.
That necessary albeit not sufficient prerequisite is
especially true for Europe to maintain control over debt dynamics.
Third, Moodys stressed the need to address medium- and long-term
fiscal challenges particularly those resulting from the ageing of
their populations quicker.
The analyst noted indeed that a further consequence of the crisis
is the reduced time available for governments to confront those
challenges.
Forexlive