Probability of debt restructuring in Europe has increased

Dexia yesterday wrote:

From a long term perspective, the probability of debt restructuring in Europe has increased and the new debt mechanism could put peripherals under renewed pressure. Also, due to the high cost of funding for the peripheral bonds, it cannot be excluded that the rating agencies will start a new round of downgrades. If this were the case, the peripheral bond markets will remain under pressure due to some forced selling.