This is likely to add more woes to the Euro zone that has been already reeling under severe economic crisis. However, Germany was affirmed with sought AAA rating.
This move would have an impact over the nations' ability to borrow money, eventually heading to more fresh troubles. It's now predicted that this economical ordeal would persist till next three years before it get stabilized.
S&P beforehand in Dec, last year, warned that it may downgrade as many as 15 Euro currency sharing nations, as the politicians seemed passing duck in taking up appropriate measures to fix up the debt trouble. And Euro debt crisis were leading Europe to the second recession in less than 36 months.
The single rating agency had pushed France and Austria a step down from AAA+ to AA+, while Italy sunk to two grades to BBB+ from A+, Spain lowered to AA- from A+, and cut Portugal’s credit to junk status, meanwhile, Cyprus rated two ranks low.
This downgrading episode sends a clear clarion that Euro debt crisis is far from over.