No doubt Eurozone countries are in for a trouble as Standard & Poor’s has carried out a mass downgrade of euro zone countries and have stripped France and Austria of their top-grade AAA ratings,
Nine of the 17 members of the euro area had their credit ratings cut by S&P. France and four other countries suffered a one-notch downgrade while Portugal, Italy, Spain and Cyprus were cut by two notches.
The decision of S&P will have impact on Europe Financial Stability fund (EFSF) as its Credit Rating will also be downgraded as France was big lender for EFSF fund and its rating has been downgraded to AA.
Thus the moral of the whole story is that one should not spend more than their income and we should stop criticising RBI for raising interest rates as they have done what is best in the interest of our nation and have saved us from global gloom and doom.