David Beers, who presided over the downgrade of the U.S. credit rating after the great debt debacle in Congress, said Wednesday that ratings in the euro zone are in danger of cuts should large parts of the region sink back into recession. He also warned that it could be tough to avoid such an eventuality if bond yields stayed high and bank balance sheets continued to shrink.
According to a Reuters report, Beers, global head of sovereign ratings at S&P, also said he expected the European Central Bank (ECB) and euro zone governments would arrive at some solution to the escalating sovereign debt crisis.