Rating agencies Moody’s and Fitch have reportedly said that the European Union’s (EU) recent decision to issue €750 billion of bonds to fund its effort to reverse the coronavirus-induced slowdown poses no immediate threat to bloc’s AAA rating.
The EU’s ratings are a reflection of the fact that borrowings are direct and unconditional obligations of the EU, guaranteed through the EU budget by all EU member states, according to the European Commission.
This article was originally published by Fxstreet.com. Read the original article here.