Moody's Investors Service today split the 18 triple A rated nations, which are normally considered risk-free, into three categories with Spain and Ireland classed as the most vulnerable to downgrades because of their struggling economies.
With governments taking on record amounts of debt to pay for stimulus plans and bank bail-outs, Moody's believes it is important to assess how far the triple A countries can stretch their balance sheets before they become a risk.
Pierre Cailleteau, chief economist for sovereigns at Moody's, said: “For a long time, a triple A credit was a completely safe investment. An investor could buy the debt of that credit without worrying, but the financial crisis has changed the rules.