(MENAFN) Fitch Ratings announced on Monday its decision to uphold the ratings of the European Union (EU) and the European Atomic Energy Community (Euratom) at the prestigious "AAA" level, maintaining stable outlooks for both entities.
In a statement, the rating agency underscored the robust commitment of member states to extend financial backing to the EU, which formed the basis for affirming the ratings and stabilizing the outlooks.
Fitch emphasized that despite the increase in debt, the EU's "AAA" rating remains resilient due to a substantial augmentation in resources contributed by member states. The agency highlighted that its rating approach for Euratom is closely aligned with that of the EU.
However, Fitch sounded a note of caution by warning that any actual or anticipated decrease in additional contributions from member states could trigger a negative rating action or even lead to a downgrade.
It's worth noting that Fitch's "AAA" rating signifies the highest level of creditworthiness on its scale, underscoring the EU's and Euratom's strong financial positions and the confidence placed in their ability to fulfill financial obligations effectively.
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