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Fitch revises Netherlands' outlook to negative; Rating remains at AAA

Fitch Ratings has affirmed its AAA rating to the sovereign debt of the Kingdom of the Netherlands. The agency has revised the outlook to negative according to a press release.

"The Outlook revision to Negative from Stable reflects Fitch's view that the leveraged Dutch economy has suffered a number of shocks." Housing declining prices, housing worst-than-expected correction and the Fitch's revised "projected peak-to-trough decline to 25% from 18%."

"This will continue to weigh heavily on household consumption and consumer confidence. Secondly, as highlighted by last week's nationalization of SNS Bank N.V., some banking system problems persist, with three of the four major banks having faced severe financial difficulties and needing external support since 2008," Fitch says. "Thirdly, the level of public debt (expected to peak at 77% of GDP) is higher than most 'AAA' peers, which reduces fiscal policy options, and the economy has performed worse than Fitch previously expected."

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