Moody's downs to negative the rating of the European Financial Stability Fund

The rating agency Moody's changed the rating from the European Financial Stability Fund for a negative classification, according to the website of the agency.

The decision comes in the day after Moody's lowered the outlook for the economies of Germany, the Netherlands and Luxembourg 'stable' to 'negative'.

Moody's said that these countries (all now have AAAs) are threatened by the problems facing the euro area, including a possible way out of the euro in Greece.

"Even if such an event is avoided, there is a probability growing stronger that is asked for help to other euro-zone countries, notably Spain and Italy”, considers Moody's, adding that "the burden "should weigh on the Member States considered as more solvents.

Fitch, Moody's and Standard & Poor's in the sight of European regulator of financial markets

The procedures in the financial markets from Moody's, Standard & Poor's and Fitch, the leading rating agencies, will be evaluated by the European regulator. ESMA aims to understand the real objectives of the courts by those rating agencies credit rating with banks.

The real goals of the cuts rating by the rating agencies will be analyzed by the market regulator, according to the FT. An investigation was opened to those three rating agencies, whose procedures have been criticized.

The European Security and Markets Authority (ESMA), according to the Financial Times want to know if the Fitch, Moody's and Standard & Poor's are carrying the proper way, or if there are vested interests in the rating cuts - which have implications for markets.

The president of ESMA, Steven Maijoor, points to another major purpose of this assessment rating agencies: verify the accuracy and transparency of their analyzes.

"The bank ratings are extremely important, since they assume as a pillar in the evaluation of the rating of states and their debt," explains Steven Maijoor.

Only since last year, the rating agencies began to provide information to ESMA, after a requirement of the European Union and after the side effects that their evaluations had on national economies - especially those crossing more difficult.

Now, there are suspicions about reverse procedure: cutting the rating is not justified, or may have other goals. States and banks are battered with cuts of rating agencies in a crisis. Given the importance that a decision to either of those agencies may have in international markets, the EMSA decided to proceed with an investigation Fitch, Moody's and Standard & Poor's.

The procedures of Fitch, Moody's and Standard & Poor's are under suspicion since the period before this international crisis: banks that agencies appreciated (would realize later) did not have the value it was assigned, and they faced even bankruptcy.

Now, there are suspicions about reverse procedure: cutting the rating is not justified, or may have other goals. States and banks are battered with cuts of rating agencies in a crisis.

Due the importance of a decision of one of those agencies may have in international markets, the ESMA decided to proceed with an investigation Fitch, Moody's and Standard & Poor's.