Fitch downgrades ratings of five EU nationsJanuary 28th, 2012 - 6:44 am ICT by IANS
Moscow, Jan 28 (IANS/RIA Novosti) International ratings agency Fitch has downgraded its sovereign credit ratings of Belgium, Cyprus, Italy, Spain and Slovenia.
Ratings of Italy and Spain, two Eurozone economic heavyweights, were slashed by two notches. The countries now have the ratings of A- and A, respectively.
Ratings on Belgium, Slovenia and Cyprus were also reduced.
The agency assigned Negative Outlook on all five countries, which indicated a 50-percent chance of further downgrade in the next two years.
The move comes after the five countries were placed on Rating Watch Negative (RWN) on Dec 16, 2011. They countries were removed from the list after the downgrade.
“Rising “home bias” in the allocation of capital, the divergence in monetary and credit conditions across the eurozone, and near-term economic outlook highlight the greater vulnerability to monetary as well as financing shocks faced by these sovereign governments,” the ratings agency said in a statement.
“Consequently, these sovereigns do not, in Fitch’s view, accrue the full benefits of the euro’s reserve currency status,” the statement reads.
S&P;, Moody’s and Fitch, the world’s three leading credit rating agencies, are private companies headquartered in the US. Ratings from Moody’s and S&P; are considered as mandatory for large debt issuers.
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- S&P; places EU, big European banks on negative watch - Dec 08, 2011
- Moody's cuts Cyprus' credit rating - Nov 05, 2011
- Moody's downgrades Italy debt rating - Jul 13, 2012
- Fitch cuts SBI, PNB, ICICI Bank outlook to negative (Lead) - Jun 20, 2012
- Eurozone agrees to bail out Spanish banks - Jun 10, 2012
- What do ratings, outlook downgrades mean? - Apr 25, 2012
- Moody's downgrades Spain credit rating - Oct 19, 2011
- Ratings agencies wary of EU summit impact on debt - Dec 13, 2011
- US loses 'stable' outlook from top agencies - Nov 29, 2011
- Moody's postpones decision on Italy's downgrade for a month - Sep 17, 2011
- Fitch maintains its AAA US credit rating - Aug 17, 2011
- S&P; downgrades Hungary credit rating to junk - Dec 22, 2011
- Fitch downgrades Spain's two major banks - Jun 12, 2012
Tags: credit rating agencies, currency status, debt issuers, divergence, downgrades, economic outlook, eurozone, heavyweights, home bias, jan 28, negative outlook, notches, private companies, reserve currency, ria novosti, rwn, snb, sovereign credit ratings, sovereign governments, sovereigns