EU’s €750 billion stimulus poses no threat to its AAA rating, ratings agency say

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.