The Euro governments looked for a way to restore confidence in Europe’s banks. Fitch downgraded Spain to AA- and Italy to A+. On Friday Moody’s placed Belgium’s AA1 rating under review because of the governments high debts. After the Dexia crisis Belgium stepped in to prop it up.
Moody’s downgraded the 9 Portuguese banks, citing exposure to Portuguese debt.
On Sunday Merkel and Sarkozy are meeting to decide what the response of the Euro Zone should be to this crisis.
Fitch and other agencies are English and American. They downgrade America, England, and other countries but with the fresh memory of World War II they never downgrade Germany.