» » Moody’s: U.S., U.K, Germany, France Aaa Ratings Well Positioned – Reports

Moody’s: U.S., U.K, Germany, France Aaa Ratings Well Positioned – Reports

(RTTNews) – The triple-A sovereign ratings of France, Germany, the U.S. and the U.K. are well positioned, despite the fiscal challenges, rating agency Moody’s reportedly said Tuesday.

While their “distance-to-downgrade” has reduced, they are still well-positioned at Aaa, the rating agency said. The debate on the optimal timing of fiscal tightening has effectively been brought to a close for European Aaa-rated governments by the threat of a dislocation of market confidence.

In the U.S., which has not faced such a threat, a strategy for debt stabilization is still in the early stages of being developed, reports said citing Moody’s senior credit officer Alexander Kockerbeck.

By contrast, Moody’s said Spain’s rating is on a review for possible downgrade. In June, the rating agency had placed Spain’s Aaa local and foreign currency government bond ratings on review for possible downgrade in view of the deteriorating economic growth prospects, deficit reduction challenges and the impact of rising funding costs over the medium term.

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