The two largest economies in the euro area are at risk of lose the rating to the triple-A level. These are France and Germany, according to reports from Handelsblatt, which cites the forecasts of several investment bank economists. And in parallel the financial newspaper reports that Fitch is reportedly on the verge of downgrading seven major investment banks, including Germany's Deutsche Bank.
As much as possible downgrading of French and German government bonds – both have the highest rating, which allows them to pay the lowest interest rates on their debt – according to economists interviewed by Handelsblatt, it would derive from the costs that the two countries have to bear to finance the aid plans for countries under tension (Greece, Ireland and Portugal).
