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The Cypriot Domino


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the_cypriot_domino.htmlAmerican Thinker:

As an island nation, Cyprus is more properly considered part of Asia than of Europe. Cyprus, though, may prove the first domino in a collapse of the Eurozone financial system, whose falling pieces will almost surely affect America.

Analysts have known for some time just how badly things are in Cyprus, although it has tended to slip under the radar because of its size. Standard & Poor's gives Cyprus sovereign debt a lousy CCC+ rating with a "Negative" outlook. Fitch gives the troubled nation as BB- rating and a "Negative" outlook. Moody's gives Cyprus a Caa3 rating and a "Negative" outlook.

All of these are awful ratings and show a strong possibility of default on sovereign debt. If the problem were limited to Cyprus, then the cause for worry would not be that great. But most of Southern Europe looks almost as bad as Cyprus.

Italy has a BBB+ rating from Standard & Poor with a "Negative" outlook; Fitch gives the same rating, and Moody's gives a Baa2 rating with a "Negative" outlook. Spain has a BBB- credit rating from Standard & Poor with a "Negative" outlook. Fitch gives Spain a BBB rating with a "Negative" outlook. Moody's gives the Spain a Baa3 rating with a "Negative" outlook. Scissors-32x32.png

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