This is becoming more and more alarming!
Reuters reports that Fitch went on a downgrade spree.
“Fitch downgraded the sovereign credit ratings of Belgium, Cyprus, Italy, Slovenia and Spain on Friday, indicating there was a 1-in-2 chance of further cuts in the next two years.”
Fitch believes that these EU countries are facing significant monetary shocks in the next two years.
Fitch cut Italy’s rating to A-minus from A-plus; Spain to A from AA-minus; Belgium to AA from AA-plus; Slovenia to A from AA-minus and Cyprus to BBB-minus from BBB, leaving the small island nation just one notch above junk status.
Ireland’s rating of BBB-plus was affirmed.
All of the ratings were given negative outlooks.