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Nine Euro Zone Countries Lose AAA Credit Rating

January 13, 2012
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Standard & Poor’s ratings agency downgraded the debt ratings of nine European countries on Friday. The agency lowered the long-term ratings on Austria, France, Malta, Slovakia and Slovenia by one notch, while lowering the long-term ratings on Cyprus, Italy, Portugal and Spain by two notches.

In December S& P warned that it might downgrade many of the 17 nations that share the euro, largely because it said European politicians were moving too slowly to strengthen the monetary union and because the euro zone’s problems were propelling Europe toward its second recession in three years. Read more about S&P cutting credit ratings for 9 Euro Zone Nations.

The action may have more symbolic than fundamental financial impact but served as a reminder that Europe’s economic woes were far from over. The downgrades may also be a blow to the euro zone’s ability to fight off a worsening debt crisis.

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