Credit Ratings Cut for 9 Euro Zone Countries

Standard & Poor’s downgraded the debt ratings of France, Italy and seven other European countries on Friday. 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.

S&P ended France and Austria's AAA status and also downgraded Italy's and Spain's credit rating by two notches and did the same for Portugal and Cyprus. The rating agency also cut ratings on Malta, Slovakia and Slovenia.

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.