WASHINGTON — Moody’s warned Friday that a Greek pullout from the eurozone could lead to downgrades of the eurozone’s top-rated governments, including economic powerhouse Germany.
Moody’s also said that an EU rescue of Spain’s banking sector could force a cut to Spain’s sovereign rating due to the “increased risk to the country’s creditors.”
“Greece’s exit from the euro would lead to substantial losses for investors in Greek securities, both directly as a result of the redenomination and indirectly as a result of the severe macroeconomic dislocation that would likely follow,” said Moody’s.
“Should Greece leave the euro, posing a threat to the euro’s continued existence, Moody’s would review all euro area sovereign ratings, including those of the Aaa nations,” it said.
The triple-A eurozone countries under Moody’s ratings are Austria, France, Germany, Finland, Luxembourg, and Netherlands.
Moody’s said that a possible move by the region to help Spain recapitalize its banks could also affect Spain’s credit standing.
Such a rescue, which could take place on Saturday to the tune of 40 billion euros ($50 billion), according to diplomats, would possibly not add to Spain’s sovereign liabilities.
Even so, Moody’s said the country’s indirect reliance on European Central Bank funding via its banks has expanded recently.
“Moody’s is assessing the implications of these increased pressures and will take any rating actions necessary to reflect the risk to Spanish government creditors,” it said.
Spain’s current rating is A3 with a negative outlook, meaning it risks a downgrade if conditions worsen significantly.
Photo AFP/File, Joel Saget
Sondland used WhatsApp to communicate with Ukraine — and won’t turn over the messages: report
Ambassador Gordon Sondland used WhatsApp to send encrypted messages to a top Ukranian official, The Washington Post reported Saturday.
The communication occurred with Andriy Yermak, a top aide to President Volodymr Zelensky, when Sondland was in Kyiv, the newspaper reported.
"Sondland was also texting back and forth on WhatsApp with Yermak throughout the trip, and had been communicating with other Ukrainian officials over the messaging app in the preceding and subsequent months, according to people familiar with his interactions," The Post reported.
Jeanine Pirro pushes conspiracy theory 2016 election interference ‘apparently’ started in Ukraine
The United States intelligence community is united in the conclusion that it was Russia that interred in America's 2016 presidential election.
But Fox News personality Jeanine Pirro said that 2016 election interference "apparently" started in Ukraine.
The conspiracy theory underlying the false claim resulted in President Donald Trump seeking foreign election interference from Ukraine, the scandal at the heart of the impeachment inquiry.
Pirro also said Deputy Assistant Secretary of State Geoge Kent is a "bozo."
Video of Pirro's opening was posted on Twitter by President Donald Trump:
WATCH: Pete Buttigieg surges to first place in ‘gold standard’ poll of Iowa caucuses
South Bend Mayor Pete Buttigieg surged in a poll of Iowa released Saturday night.
The poll, by Des Moines Register, CNN and Mediacom, showed major movement in the race.
"Since September, Buttigieg has risen 16 percentage points among Iowa’s likely Democratic caucusgoers, with 25% now saying he is their first choice for president. For the first time in the Register’s Iowa Poll, he bests rivals Joe Biden, Bernie Sanders and Elizabeth Warren, who are now clustered in competition for second place and about 10 percentage points behind the South Bend, Indiana, mayor," the newspaper reported.