As European countries continue to focus on how to resolve the debt crisis, credit rating downgrades of the AAA-rated countries are under possible discussion by Standard & Poor's. According to The Financial Times, S&P has established a "creditwatch negative" status of the remaining AAA-rated European countries.
If S&P confirms plans to place the European nations on creditwatch negative status, each nation's prized AAA-credit status is subject to a downgrade within 90 days.
A lowered credit rating will require sovereign nations seeking bond loans to pay higher rates of interest. European nations need stability and the benefit of the highest credit ratings now!
The world's financial markets are undeniably interconnected. Europe represents the largest market for goods produced by U.S. manufacturers. In addition, European securities are widely embraced by both U.S. financial advisors and investors.
Europe is close to the hearts, minds, and finances of Americans. Downgrades of AAA-rated nations in the EuroZone will affect the U.S. financial markets and the future profits of many Americans.
Downgrades in the EuroZone will also affect Asia. And China, according to our network of financial advisors, is a potential hotbed of concern in 2012.