Standard & Poor’s lowered its credit rating for the Netherlands to AA plus from AAA on Friday, while lifting its outlook for the struggling economies of Spain and Cyprus.
Moritz Kraemer, chief sovereign ratings officer at S&P, told CNBC that the Netherlands’ downgrade by the S&P ratings committee was triggered by the country’s weak economic growth prospects.
“We see that both in recent history and in our projections, that the economic dynamism of the Dutch economy will lag behind what we would usually expect for sovereign economies at that level of development and prosperity,” he told CNBC on Friday. “So this has been the immediate trigger for the ratings decision.”
The agency’s report said it expects the country’s gross domestic product (GDP) to contract by 1.2 percent in 2013, before growing by 0.5 percent in 2014 and slowly accelerating to 1.5 percent by 2016. It argued that real economic output for the country will not surpass 2008 levels before 2017.
The cut means the only euro zone countries to retain their AAA rating at S&P are Finland, Germany and Luxembourg.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.