December 20, 2011

Fitch Ratings on Friday warned it may downgrade France and six other eurozone countries as it believes that a comprehensive solution to the region’s debt crisis is “technically and politically beyond reach.”

France’s possible downgrade is not imminent but could come in two years, Fitch said in a statement, as it revised the outlook of the country’s AAA rating to negative.

For the other countries – Belgium, Cyprus, Ireland, Italy, Slovenia and Spain – a downgrade could come much sooner. Those nations, which already had a negative rating outlook from Fitch, were placed on credit watch negative, which traditionally signals the possibility of a downgrade within three months at most.

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