JP MORGAN CHASE(US:JPM) Xin Lang Cai Jing·2026-01-06 12:15Core Viewpoint - Morgan Stanley identifies France, Belgium, and Austria as the Eurozone countries most likely to face credit rating downgrades by 2026, with each having a 50% probability of downgrade from at least one of the major rating agencies [1] Group 1: Credit Rating Risks - The report highlights that France, Belgium, Austria, and Finland are facing negative rating action risks due to ongoing fiscal challenges [1] - The analysts expect limited changes in credit ratings across the region overall [1] Group 2: Southern Europe Outlook - There is an increasing potential for credit rating upgrades or positive outlooks for Southern European countries [1] - The predictions emphasize the impact of fiscal pressures on countries previously considered the safest borrowers in the Eurozone [1] Group 3: France's Fiscal Challenges - France's credit rating continues to deteriorate, raising investor concerns about the country's difficulties in restoring public finances [1] - The delay in the 2026 budget proposal underscores the fiscal challenges faced by France [1]