Earlier this week, Standard & Poor’s placed Germany, France and 13 other eurozone nations on negative credit watch, saying “continuing disagreements among European policy makers on how to tackle” the region’s debt crisis risk is damaging their financial stability. Furthermore, S&P warned that the European Financial Stability Facility may lose its top credit rating. “We could lower the long-term credit rating on EFSF by one or two notches if we were to lower the AAA sovereign ratings, which are currently on credit watch, on one or more of EFSF’s guarantor members,” S&P explained. Now, more steps are being considered by the European Central Bank in order to stimulate lending.

Originally from The Market Oracle