LONDON (MNI) – Euro zone sovereign ratings will continue to face
pressures until their fiscal policies and economic recoveries become
sustainable, Fitch Ratings said today.
At a conference here on the European Credit Outlook, David Riley,
Fitch’s Head of Global Sovereign Ratings, said:
“2011 will be a crucial year as governments pursue fiscal austerity
and, at the European level, the new policy framework and rules of the
game are defined for governments and investors.”
“The crisis is systemic in that it reflects concerns about the Euro
and Euro area governance, as well as peripheral country vulnerabilities,
and it will require a European wide as well as national level policy
response”.
“Despite these challenges, Riley continued, “Fitch believes that
underlying credit fundamentals are stronger than current levels of risk
pricing imply, and that the risk of a break up of the Euro zone remains
small. However, until governments are seen to have placed public
finances on a sustainable path and economic recovery is secure,
sovereign credit ratings will remain under pressure and further bouts of
market turmoil are likely.”
–London Bureau; Tel: +442078627492; email: ukeditorial@marketnews.com
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