Woww Germany, Netherlands and Luxembourg Rating Outlooks Cut to Negative by Moody’s

Another Eurozone horrors came up, finally Germany, the Netherlands and Luxembourg had the outlooks for their Aaa credit ratings lowered to negative by Moody's Investors Service, which cited “rising uncertainty" about Europe’s debt crisis. impact by risks that Greece may leave the 17-nation euro currency and “increasing likelihood” of collective support for European countries such as Spain and Italy were among reasons for the change, Moody’s said yesterday in a statement.

Moody's said “Given the greater ability to absorb the costs associated with this support, this burden will likely fall most heavily on more highly rated member states if the euro area is to be preserved in its current form,”it can be more worsen for Eurozone economic growth, as we knew that Europe was plunged into fresh market turmoil yesterday as the first call for bailout aid by a Spanish region sent borrowing costs surging, while Spain and Italy reinstated a ban on betting on stock declines. Government bond yields in the U.S., U.K. and Germany fell to records, while stocks dropped and the euro traded below its lifetime average against USD

Here is the math, Yields on German 10-year bonds were 1.18 percent yesterday, down from 1.83 percent at the end of last year. The Netherland’s securities of the same maturity yield 1.63 percent, while those of Luxembourg yield 1.71 percent.