More bad news for the Euro. The EU should seriously consider ditching it altogether and go back to their own currencies, or form blocks of currencies among like minded states. KGS
Italy, Spain Ratings Cut by Fitch; Belgium Is Put Under Review by Moody’s
Fitch Ratings downgraded Italy and Spain on concern they will struggle to improve their finances as Europe’s debt crisis intensifies, while Moody’s Investors Service put Belgium on review for a possible cut.
Spain had its foreign and local currency long-term issuer default ratings cut to AA- from AA+, while Italy had the same set of ratings lowered to A+ from AA-, Fitch said in statements yesterday. The outlook for both countries is negative. Fitch also maintainedPortugal’s rating at BBB-, saying it would complete a review of that ranking in the fourth quarter.
Belgium’s Aa1 local- and foreign-currency ratings were placed under review for a downgrade by Moody’s because of rising funding risks for euro region nations with high levels of debt and additional bank support measures which are likely to be needed.
The downgrades for Spain and Italy reflect “the intensification of the euro zone crisis,” Fitch said, citing risks to Spain’s “fiscal-consolidation” efforts. “A credible and comprehensive solution to the crisis is politically and technically complex and will take time to put in place and to earn the trust of investors,” Fitch said of Spain.