PARIS (AP) — Ratings agency Standard & Poor's has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany's at the coveted 'AAA' level.
The cuts, which eliminated France and Austria's triple-A status, deal a heavy blow to the currency union's ability to fight off a worsening debt crisis.
Italy was lowered to BBB+ from A. Spain slipped to A from AA-.
The downgrades come as crucial talks on cutting Greece's massive debt pile appeared close to collapse Friday.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
PARIS (AP) — Ratings agency Standard & Poor's has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany's at the coveted 'AAA' level.
The cuts, which eliminated France and Austria's triple-A status, deal a heavy blow to the currency union's ability to fight off a worsening debt crisis.
Italy was lowered to BBB+ from A. Spain slipped to A from AA-.
The downgrades come as crucial talks on cutting Greece's massive debt pile appeared close to collapse Friday.
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