Fitch downgrades five Eurozone sovereigns

Date: Monday 30 Jan 2012

Fitch announced late on Friday to downgrade the ratings of five Eurozone nations.

The ratings agency took ratings actions on six Eurozone sovereign ratings that had been on review since December 16th, five which resulted in a downgrade. All of the ratings carry a negative outlook implying a 50% probability of a further cut in the next two years.

“The Eurozone crisis will only be resolved as and when there is broad economic recovery," Fitch said.

"It is evident that further substantial reforms of the governance of the Eurozone will be required to secure economic and financial stability, including greater fiscal integration.”

The rating actions on the long-term (LT) and short-term (ST) Issuer Default Ratings (IDRs) are as follows:

-Italy LT IDR downgraded to 'A-' from 'A+'; Negative Outlook; ST IDR downgraded to 'F2' from 'F1'.

-Spain LT IDR downgraded 'A' from 'AA-'; Negative Outlook; ST IDR downgraded to 'F1' from 'F1+'.

-Belgium LT IDR downgraded to 'AA' from 'AA+'; Negative Outlook; ST IDR affirmed at 'F1+'.

-Cyprus LT IDR downgraded to 'BBB-' from 'BBB'; Negative Outlook; ST IDR affirmed at 'F3'.

-Slovenia LT IDR downgraded to 'A' from 'AA-'; Negative Outlook; ST IDR downgraded to 'F1' from 'F1+'.

-Ireland LT IDR affirmed at 'BBB+'; Negative Outlook; ST IDR affirmed at 'F2'.

SB

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