EU retains AAA credit rating
The European Union has maintained its top credit rating of (Aaa) with a stable outlook, supported by strong financial and political backing from member states and a robust financial structure. The rating is based on the Union's ability to borrow from its members, with annual issuances ranging between 150 and 180 billion euros, and Germany is its largest contributor, covering about 22% of the budget. In a neutral stance, the Union manages financing matters cautiously, especially regarding aid to Ukraine, of which approximately 70% is allocated to risk mitigation. Moody's warns that any downgrade in the rating could result from a deterioration in the creditworthiness of major contributors or weakened support for the common mechanism.
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