PARIS (AP) — Ratings agency Standard & Poor's has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany's at the coveted 'AAA' level.
The cuts, which eliminated France and Austria's triple-A status, deal a heavy blow to the currency union's ability to fight off a worsening debt crisis. In total, S&P cut its ratings on nine eurozone countries.
Italy was lowered by two notches to BBB+ from A, and Spain fell to A from AA-. Portugal and Cyprus also dropped two notches. The agency also cut ratings on Malta, Slovakia and Slovenia.
The downgrades come as crucial talks on cutting Greece's massive debt pile appeared close to collapse Friday.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
PARIS (AP) — Ratings agency Standard & Poor's has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany's at the coveted 'AAA' level.
The cuts, which eliminated France and Austria's triple-A status, deal a heavy blow to the currency union's ability to fight off a worsening debt crisis.
Italy was lowered to BBB+ from A. Spain slipped to A from AA-.
The downgrades come as crucial talks on cutting Greece's massive debt pile appeared close to collapse Friday.
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