Fitch warns of eastern European downgrades if Greenland strife cracks NATO
Fitch warns that a NATO split over Greenland could trigger one-notch sovereign rating downgrades in Europe, with risk rising for countries near Russia, excluding Denmark's AAA rating.
- On Jan 15, Fitch warned Europe could face a wave of one-notch sovereign downgrades if tensions with the U.S. over Greenland fracture NATO, James Longsdon told Reuters.
- A dispute over Greenland has emerged as Danish Prime Minister Mette Frederiksen warned a conflict with the U.S. could end NATO, while Longsdon said, 'Greenland is a large land mass, but it's very small economically and fiscally for Denmark'.
- Fitch noted its existing one‑notch 'adjustment' practice for hot spots like Israel, Taiwan and South Korea, and Longsdon said proximity to Russia would drive Europe's vulnerability.
- Denmark remains in the triple‑A club alongside Germany, Switzerland and Norway, and Fitch said tensions over Greenland are unlikely to affect its triple‑A sovereign rating.
- Longsdon cautioned there was no set timeline and any cuts could be synchronised or individual; he warned countries closer to Russia, like Moldova with about 1,500 Russian troops in Transdniestria, face greater exposure.
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Observador
Noticias ao MinutoFitch's analyst says NATO's continuity is a determinant factor for ratings in Europe. Agrarian Russia's proximity has declined. Denmark maintains AAA despite the tension with Trump.
Fitch has already applied a negative adjustment by a few states in sensitive geopolitical areas such as Israel, Taiwan or South Korea. A similar approach could be extended in Europe if the North Atlantic alliance would give signs of weakness. In such a scenario, the countries in the vicinity of Russia — including Romania, Poland and the Baltic States — would be considered the most vulnerable — would be to explain to the head of the department of…
The Print
The Straits TimesFitch warns of mass eastern European downgrade if Greenland strife cracks NATO
By Marc Jones LONDON, Jan 15 (Reuters) - Europe could face a wave of one-notch credit rating downgrades if tensions with the U.S. over Greenland fracture NATO, Fitch's top sovereign analyst said on
Fitch warns of eastern European downgrades if Greenland strife cracks NATO
A raft of European countries could face a one-notch credit rating downgrade if tensions with the U.S. over Greenland fracture NATO and raise the prospect of more trouble with Russia, Fitch's top sovereign analyst said on Thursday.
The answer goes back to Fitch's sovereign ratings, James Longsdon, pointed out that NATO's follow-up "clearly" is a factor that its share would consider giving its cr ratings in Europe.
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