Moody's: Aaa-Rated Sovereigns Unlikely To See Further Downgrades

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Wednesday, Moody's said it is unlikely to downwardly revise the Aaa-rated sovereigns in the near term. Almost all Aaa-rated sovereigns have been severely hit by the global economic and financial crisis, the rating agency said in a report entitled "Aaa Sovereign Monitor".

According to Pierre Cailleteau, Managing Director of Moody's Sovereign Risk Group, Moody's does not expect rating downgrades in the near future, especially after the recent downgrade of Ireland, which had been the most 'vulnerable' Aaa.

UK and USA have lost height in the Aaa space and continue to warrant its characterization as "resilient". However, to maintain this status, the UK and US will have to severely adjust their fiscal policies, even in the unlikely event of a strong rebound of their economies, the report said.

Cailleteau added, "Although highly unlikely, it is conceivable that a large and wealthy economy could lose its Aaa rating if it were to experience a material and irreversible deterioration in its debt conditions over the next five years or so, following the fate of Japan in the 1990s."

Wednesday, Moody's said it is unlikely to downwardly revise the Aaa-rated sovereigns in the near term. (Market News Provided by RTTNews)