Fitch downgrades five countries in the eurozone

The eurozone suffered further misery over the weekend after Fitch announced it has downgraded the ratings of five countries in the single-currency bloc.

After placing six countries on 'rating watch negative' status in December, the global rating agency downgraded Italy, Spain, Belgium, Cyprus and Slovenia.

Italy was reduced from AA+ to A-, while Spain and Slovenia moved from an AA- rating to A and Belgium lost its AA+ status, falling to an AA. Cyprus' BBB was knocked down to a BBB-, but Ireland maintained its BBB+ rating, although its outlook was cut.

Fitch said: "Overall, today’s rating actions balance the marked deterioration in the economic outlook with both the substantive policy initiatives at the national level to address macro-financial and fiscal imbalances."

It also predicted that there is a greater than 50 per cent chance that all six will be downgraded further within the next two years.

The move comes after Standard & Poor's downgraded nine eurozone economies earlier this month, with France losing its AAA rating.

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