Euro Zone: S&P downgrades nine countries

Standard & Poor’s downgraded the credit ratings of nine euro zone countries.

BERLIN/ATHENS: Standard & Poor’s downgraded the credit ratings of nine euro zone countries, stripping France and Austria of their coveted triple-A status but not EU paymaster Germany, in a Black Friday the 13th for the troubled single currency area. “Today’s rating actions are primarily driven by our assessment that the policy initiatives that have been taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone,” the US-based ratings agency said in a statement. S&P cut the ratings of Italy, Spain, Portugal and Cyprus by two notches and the standings of France, Austria, Malta, Slovakia and Slovenia by one notch each. The move puts highly indebted Italy on the same BBB+ level as Kazakhstan and pushes Portugal into junk status.

Published in The Express Tribune, January 15^th, 2012.