NEW YORK (Reuters) - Standard & Poor's on Tuesday pronounced there is a larger series of emperor and banking holds during risk of ratings downgrades as a outcome of a new warning that it competence cut a credit ratings on 15 euro section nations.
"Sovereigns and banks continue to uncover a biggest hillside risk. The entities in these dual sectors are strong in Europe, with 25 European sovereigns and 42 European banks on a intensity bond downgrades list," Diane Vazza, conduct of Standard & Poor's tellurian bound income research, pronounced in a statement.
S&P pronounced it listed 463 entities as many during risk of downgrades as of Dec 6, adult from 457 on Nov 1.
On Dec 5, S&P placed a ratings of 15 euro section countries on credit watch disastrous -- including those of top-rated Germany and France, a region's dual biggest economies -- and pronounced "systemic stresses" are building adult as credit conditions tie in a 17-nation region.
The warning came before leaders of 26 European Union nations reached a ancestral agreement final week to breeze a new covenant for deeper formation in a euro section in an bid to rein in a region's debt crisis.
Although a credit watch disastrous examination typically means there will be a preference within 3 months, S&P final week had pronounced that it would interpretation a examination "as shortly as possible" following a EU leaders summit.
S&P on Tuesday pronounced that given a final report, it had private 74 entities from a intensity downgrades list and combined 80.
"Of a issuers that we private from a intensity downgrades list given a final report, 12 are in a banking sector. Seven of a 12 banks were downgraded, many of them in Europe, that reflects ongoing mercantile concerns in a euro zone," S&P pronounced in a statement.
Markets sojourn on corner over what S&P's preference will be on a euro section ratings. Will they find adequate in a new covenant to reason off on a downgrade, be confident a new covenant is relocating a segment in a right direction? Or is a agreement not adequate to change S&P's opinion that a credit predicament is being solved in a proficient manner?
On Monday, S&P's arch economist Jean-Michel Six pronounced time was using out for a singular banking confederation to solve a debt problems.
"There is substantially nonetheless another startle compulsory before everybody in a euro section reads from a same page, for instance a vital German bank experiencing some genuine problems on a markets, that is a genuine probability in a nearby term," Six told a business discussion in Tel Aviv.
(Additional stating Caryn Trokie; Editing by Leslie Adler)
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