Egan-Jones downgrades Netherlands and Austria to a, negative watch. These developments are resulting in some concerns for the stability of the Euro binary option markets. Both countries are member of the E.U and their suffered credit ratings might send in negative signal for the binary markets.
Netherlands, that one of four remaining AAA-rated Eurozone countries was just downgraded by Egan Jones. And for good measure, E. Jones also cut Austria, both to A, outlook negative.
The Netherlands is among the strongest European Union economies. However, the Netherlands has been shouldering the burdens of other EU countries and their banks via its exposure to the EFSF and indirectly via the ECB. The country’s debt to GDP of 75% as of 2011 (expect near 82% for 2012) and a deficit to GDP of 4.7% is weak and is understated due to exposures to the EU periphery and the Netherland’s financial institutions.
The situation with Austria is very similar. The country is relatively small but has been one of the most stable Euro economies.
Recently however, Austria has been shouldering the burdens of other EU countries and their banks via its exposure to the EFSF and indirectly via the ECB. The country’s debt to GDP of 79.4% as of 2011 (expect near 85% for 2012) and a deficit to GDP near 3.0%, are weak and are understated due to exposures to the EU periphery and the Netherland’s financial institutions.
