Fitch cuts five EU states’ credit ratings

The Fitch Ratings building is seen in New York (Reuters / Jessica Rinaldi)
Ratings agency Fitch has downgraded the credit ratings for five European nations, namely Belgium, Cyprus, Italy, Slovenia and Spain.

­The agency stated the revision was made due to "the absence of a credible financial firewall against contagion and self-fulfilling liquidity crises" and "the marked deterioration in the economic outlook" in Europe.

Italy’s credit rating is down to A- while Spain saw a drop to A.

Previously a total of nine EU countries had their S&P ratings downgraded. On January 14, S&P cut the sterling AAA credit rating of Europe's second-largest economy, France. Austria, Malta, Slovakia and Slovenia also saw their ratings cut one notch, while Cyprus, Italy, Spain and Portugal dropped two positions.