Moodys cuts ratings on six EU countries

In a statement,Moodys said the main reasons underpinning its decision were the uncertainty over the euro areas prospects for institutional reform of its fiscal and economic framework and the resources that will be made available to deal with the crisis. It also cited Europes increasingly weak macroeconomic prospects,which it said threaten the adoption of austerity programmes and the structural reforms needed to promote competitiveness.

Moodys downgraded Spain to A3 from A1; Italy to A3 from A2; and Portugal to Ba3 from Ba2 with a negative outlook. The agency also lowered the ratings for Malta,Slovakia and Slovenia. Moodys revised to negative its outlook on Britain,France and Austria.