Friday, October 7, 2011

Fitch: Italy And Spain Credit Rating Downgraded

Developing: Fitch on Friday cut Italy's sovereign credit rating by one notch to A+ from AA-, saying the move reflected the worsening of the euro zone's debt crisis and an erosion of market confidence caused by the government's initially hesitant response to the rise in its bond yields.
Fitch, the third ratings agency to downgrade Italy in recent weeks following similar moves by Standard & Poor's and Moody's, maintained a negative outlook on its rating, citing a risk of fiscal slippage and a possible further intensification of the crisis in the euro zone as a whole.
(Reporting By Gavin Jones)
Fitch on Friday cut Spain's credit ratings by two notches, just a few minutes after downgrading Italy, saying the intensification of the euro zone debt crisis has had a negative impact in the entire region.
The ratings agency cut Spain's credit ratings to AA-minus from AA-plus. It kept a negative outlook on the new rating, in a sign more downgrades are possible in the next couple of years.
Risks to the fiscal consolidation of Spain have risen as prospects for the country's economic growth declined, Fitch said in a statement.

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