Germany,Netherlands outlook-:Moody8217;s

It also warned that Germany and other countries rated 8216;Aaa8217; might have to increase support for troubled states such as Spain and Italy that are struggling to finance their deficits.

The burden of that support would fall most heavily on the euro zone8217;s top-rated states,it said.

The agency affirmed Finland8217;s 8216;Aaa8217; rating and stable outlook,but said all four countries were adversely affected by uncertainty about the outcome of the euro area debt crisis.

Moody8217;s said it would also weigh the euro zone developments8217; impact on Aaa-rated Austria and France. Those countries8217; outlooks were lowered to negative in February,and Moody8217;s now expects,by the end of the third quarter,to review whether their current rating outlooks remain appropriate or whether more extensive rating reviews are warranted.

The agency noted that it now has a negative outlook on all the countries whose balance sheets are expected to bear the main financial burden of support.

We are in a transitional period,and this transitional period could last for many years,and during this transitional period we do see additional pressure on the strongest nations8217; balance sheets,which has increased pressure on their credit standing,said Moody8217;s senior credit officer Sarah Carlson.

Spanish bond yields,a gauge of the premium investors demand to lend money to the government,soared on Monday to their highest level since the euro8217;s inception more than a decade ago. Investors fear the country may soon need an emergency rescue.

Investors8217; rush for safety Monday sent 10-year German government bond yields to record lows and U.S. Treasury bill yields to their lowest since the 1800s.

The German Finance Ministry said the country would remain an anchor of stability in the 17-nation euro zone,adding that Moody8217;s was focusing on short-term risks.

By means of its solid economic and financial policy,Germany will retain its 8216;safe haven8217; status and continue to play its role as the anchor in the euro zone responsibly,the ministry said in a statement.

It added,Germany continues to find itself in a very solid economic and financial situation.

Finland escaped a negative outlook partly because of its small and domestically oriented banking system,its fiscally conservative budget policies and its limited trade links with the rest of the euro area,Moody8217;s said.

Moody8217;s also cited Finland8217;s efforts to reduce its exposure to potential loan losses in bailouts of euro area sovereigns. Finland has demanded collateral in exchange for loans to debt-burdened countries in the euro zone.

Rival agency Standard amp; Poor8217;s maintains a stable outlook for Germany but negative outlooks for Luxembourg,the Netherlands and Finland. All are rated 8216;AAA8217;. Fitch Ratings rates all four AAA and gives them stable outlooks.

Standard amp; Poor8217;s rates France AA-plus with a negative outlook; Fitch rates France AAA with a negative outlook.

Standard amp; Poor8217;s rates Austria AA-plus with a negative outlook; Fitch rates Austria AAA with a stable outlook.

Moody8217;s Investors Service on Monday changed its outlook for Germany,the Netherlands and Luxembourg to negative from stable as fallout from Europe8217;s debt crisis cast a shadow over the euro zone8217;s top-rated countries.