Meet the vanishing AAA credit club

By:
Matthew Turner
Published on:

The US, Austria, Germany and the Netherlands have all lost their AAA-equivalent credit ratings, according to Euromoney Country Risk data, yet all remain in the prized club thanks to positive scores from at least two rating agencies.

The US and the core eurozone economies are poised to lose their AAA rating, according to ECR calculations.

Austria, Germany and the Netherlands all have ECR scores lower than the AAA average, while the US’s risk assessment remains bottom of this credit-rating bucket. The US’s ECR score of 74.7 is nine points short of the AAA average. 

Meanwhile, all five of the eurozone’s AAA-rated sovereigns have been put on a negative outlook by at least one of the main rating agencies, suggesting that problems in the eurozone are systematic to the core.

By this stage, ECR analysts reckon the US should have lost its AAA credit rating in December 2011, when its ECR score tumbled below the AAA threshold, falling to 76 points.

 

For more, visit Euromoney Country Risk.