S&P warns euro nations of possible credit downgrade

[Gerald]

Ratings agency Standard and Poor's has put almost all the eurozone including Germany and France on "credit watch" due to fears over the debt crisis.

S&P's move means six countries with top AAA ratings would have a 50% chance of seeing their ratings downgraded.The news came as a surprise to investors and saw stocks fall back on early gains as the euro also fell.France and Germany responded by saying proposals for a treaty change would reinforce governance of the eurozone.They said their priority was to press ahead with proposals for reform, but the BBC's Chris Morris in Brussels says many details have not been revealed and other countries will reserve judgement till they have seen them.The move by Standard and Poor's came after talks in Paris between French President Nicolas Sarkozy and German Chancellor Angela Merkel.They said all 17 eurozone states should should face greater checks on their budgets and sanctions if they run up deficits, and that a new treaty should be completed by March to ensure such a crisis never happens again.

http://www.bbc.co.uk/news/business-16042346


Note: 6 December 2011 Last updated at 07:19 GMT