More Ratings Cuts in Store for European Sovereign Debt

Six Eurozone nations are likely to see their debt ratings before the end of the month. Fitch Ratings put Spain, Italy, Ireland, Cyprus, Belgium and Slovenia on review for possible downgrades in December, and, according to Bloomberg News, the firm expects the axe to fall:

We do expect that the review will lead to downgrades of one to two notches for all the countries under review.

The downgrades will lower the ratings by one or two notches.

Fitch has lowered its outlook on France’s ‘AAA’ rating, but does not expect to make a ratings cut on French debt this year.

Last week Standard & Poor’s lowered ratings on 16 Eurozone countries, including France, but not including Germany. All six of the likely Fitch downgrades were also downgraded by S&P.