US' NATO shift negative for Europe's sovereign ratings - Moody's

LONDON, July 13 (Reuters) - Progressive U.S. disengagement from European security affairs is negative for Europe's sovereign credit ratings, Moody's said on Monday, due the increased defence costs the region's governments will now face.

A summit of the North Atlantic Treaty Organisation (NATO)) in Turkey last week saw its 32 member countries agree to shift the balance of responsibility for Europe's defence to the alliance's European members, and away from the United States.

"The (U.S.) disengagement is credit negative for European sovereigns," a report by two of Moody's top rating analysts said. It said the "credit effect" would depend on how the shift was managed in the coming years.   

(Reporting by Marc Jones; editing by Amanda Cooper)