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Alexkid

Standard & Poor's defends mass European downgrade
ANGELA CHARLTON
(The Associated Press)



05:51:38AM (ET) Sunday,January 15,2012.

PARIS (AP) — Amid a wave of criticism, Standard & Poor's defended its decision to downgrade nine European countries and insisted Saturday that the region's leaders aren't doing enough to solve their debt crises.

The prime minister of France, the biggest economy hit by the downgrade, vowed to press ahead with cost-cutting measures that opponents say will suffocate growth. The loss of its coveted AAA status wounded France's self-image and market credibility just as it's facing a new recession and presidential elections.

The move Friday night may make it more expensive for struggling countries to borrow money, reduce debts and sustain growth. It also came just as crucial negotiations between the Greek government and its private creditors appeared close to collapse.

Voices rose up Saturday against the power that ratings agencies wield. The criticism came from countries targeted by the downgrade such as Austria and Cyprus as well as from Germany, which was spared the blow.

The downgrade brought a downbeat end to a mildly encouraging week for Europe's most debt-laden nations. It also served as a reminder that the 17-country eurozone faces what German Chancellor Angela Merkel called a "long road" ahead to win back investors' confidence.

Cyprus President Dimitris Christofias called the downgrade "unacceptable."

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What a bombshell !
Downgrade may have a effect on the world markets and Wall St as well.
We'll have to see this week.

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Yeah...Do That.