S&P: Credit ratings threat if recession hits eurozone

STANDARD & Poor’s warned that credit ratings in the eurozone could come under renewed pressure, if large parts of the currency bloc slip back into recession, as expected, next year.

David Beers, the global head of sovereign ratings at S&P, also said he expected the European Central Bank (ECB) and eurozone governments to come to some sort of accommodation on how to resolve the spiralling sovereign debt crisis.

“With so much at stake, one would expect that some accommodation can be found between eurozone monetary authorities and national policy makers that balances substantive government policy actions with more aggressive steps by the ECB to counter a renewed economic downturn,” Mr Beers said.