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Banking, finance, and taxes

Fitch Throws Downgrades For Italy & Spain (EWI, EWP)

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By Jon C. Ogg Updated Published
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The ratings agencies are at it again.  We have noted that the PIIGS will continue to see downgrades and that is what we are seeing today.  Fitch downgraded both Italy and Spain.  Shares of iShares MSCI Italy Index (NYSE: EWI) are still up 0.4% at $12.58 on the day but shares were up around $12.80 earlier today.  Shares of iShares MSCI Spain Index (NYSE: EWP) are down only $0.02 at $33.65 but shares were above $34.00 earlier this morning.

Italy was cut to “A+” from “AA-” today noting that the crisis is a significant financial and economic shock for Italy.  It also notes that Italy has been hesitant to respond and it has eroded confidence.

Spain was downgraded to “AA-” with a negative outlook due to risks of fiscal consolidation efforts. It noted that it could go down to the “A-” range if the FROB costs are more than expected.

One day will hopefully come that U.S. investors do not have to worry about headline risks coming out of Europe and the lands of the PIIGS.  That day is just not yet here.

JON C. OGG

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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