Greek bailout to weigh on rest of Europe

Here’s the nasty bit from the Moody’s downgrade of Greece for the rest of the Eurozone, according to the FT:

The US rating agency downgraded Greece by three notches to Ca, Athens’ lowest rating and one that implies the country is already in default.

But it also warned that, in spite of reducing contagion in some ways, last week’s set of measures to shore up the eurozone could lead to downgrades of the creditor countries because of the precedent for future bail-outs.

That would spell bad news for the likes of Germany and especially France, which some investors had already worried could be downgraded from its triple-A status.

While the focus is on the US today, the bigger-picture of the bailout hangover while be a structural hangover for months and perhaps years to come.