Italy, Spain econ. outlook downgraded

Islam Times reports from Wall Street Journal: Fitch Ratings has cut Italy's foreign and local currency ratings by one notch from AA- to A+, leaving it with a “negative” outlook.

According to the agency which reported similar downgrades as Moody's and Standard and Poor's, Italy's downgrade reflected the intensification of the eurozone crisis.

Fitch also cut Spain's foreign and local currency ratings by two notches from AA+ to AA-, pushing the ratings three steps down from AAA.

In its report for Spain, Fitch noted signs of risks of slow growth and high regional debt, giving the country a "negative" outlook.

The agency says that the current crisis amounts to a significant financial and economic shock.

This is while Spain has the highest unemployment rate in the 27-nation EU, with a jobless rate of more than 21 percent and the Italian government has announced an austerity package aimed at stopping its debt crisis.

Spain and Italy have been witnessing massive protests during the past months.