The recent downgrade to sovereign credit ratings for several of the Eurozone countries is just the latest challenge to befall the 17-member group of countries sharing the Euro. A total of nine countries were included in the downgrade and while none of the changes were overly surprising, the reclassification casts doubt on the likelihood that some of the weaker countries can remain viable.
With the reclassification, Germany, Finland, and the Netherlands are the only countries to retain triple-A rated status. When expanding to all of Europe, only two more countries Ã¢â‚¬â€œ the UK and Switzerland Ã¢â‚¬â€œ can claim top status, and the UKÃ¢â‚¬â„¢s hold on triple-A is tenuous.
The following graphic compares the debt for most of the European economies together with their current credit rating. The 10-year bond yield is represented by the anchor dragging behind each economy Ã¢â‚¬â€œ the bigger the anchor, the greater the drag on the economy.
At a Glance: European Debt and Credit Ratings
Created by OANDA