Credit rating services' reductions to three euro zone nations pulled down the value of the 17-nation single currency on Friday, serving as a blunt, bleak reminder of the infectious contagion of the sovereign debt crisis, according to Reuters.
Moody's slashed U.K. banks' ratings while both Spain and Italy were subject to cuts by Fitch Ratings. Italy and Spain, no strangers to the debt scourge hobbling euro zone nations' banks and public finance systems, now are several levels beneath the perfect AAA rating.
"Despite the important measures already adopted by the government, further structural reform will be necessary to further enhance the competitiveness and productivity of the economy," Fitch's remarks about Spain state.
Fitch's credit rating of Italy drops to A-plus from AA-minus and the nation was left with a negative outlook, according to Dow Jones Newswires. Italy's rating now hovers four levels lower than perfect. The credit rating of Spain drops to AA-minus from AA-plus, now three levels lower than the intact rating.
Fitch put Portugal on notice, indicating the country's rating is under scrutiny as well.
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