Reuters writes that Standard & Poor's Ratings Services is finding itself in a rare position, winning praise for warning it may downgrade the sovereign debt of 15 European countries.
The move, along with a similar warning by S&P that it could cut the credit rating on the euro zone's financial bailout fund, served as a call to action on the need to truly tackle the euro zone debt crisis ahead of a summit of European leaders on Thursday and Friday. The threat to downgrade ratings on most of the euro zone, including cutting the top-tier ratings of economic powerhouses Germany and France, has put the meeting's participants on notice.
"This is a call to action." said Leo Grohowski, who helps manage $170 billion as chief investment officer at BNY Mellon Wealth Management.
Some investors think European leaders have postponed hard decisions, in part because of the complex interplay between economic and political factors. Most hedge fund managers and institutional investors at the Reuters 2012 Investment Outlook Summit in London and New York this week believe that, ultimately, Europe will "muddle through" its debt crisis.
Find out more at http://in.reuters.com/article/2011/12/07/investment-summit-idINDEE7B606Z20111207?type=economicNews
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