Six Euro Nations Downgraded

International ratings agency Moody's has downgraded the credit rating of six eurozone countries, including Italy, Portugal and Spain.

Malta, Slovakia, Slovenia and Austria were also downgraded, while the outlook on the UK's Aaa rating has been changed to "negative ".

Moodys said the changes were in response to Europe's "increasingly weak macroeconomic prospects", which they said would threaten the implementation of domestic austerity programmes and the structural reforms that are needed to "promote competitiveness".

"Moody's has reflected these constraints and exposures in its decision to downgrade the government bond ratings of Italy, Malta, Portugal, Slovakia, Slovenia and Spain as listed above. The outlook on the ratings of these countries remains negative given the continuing uncertainty over financing conditions over the next few quarters and its corresponding impact on creditworthiness," the spokesman said.

Meanwhile, the US rating agency said Germany's top-tier rating is "appropriate" and it affirmed the AAA rating on the eurozone's bailout fund, the European Financial Stability Fund.

(DW)