No bounce in euro; spec shorts at new high; S&P slashes ratings

S&P Cuts Ratings on France, Italy, Other European Countries

S&P lowered by one notch the long-term ratings on Austria, France, Malta, Slovakia, and Slovenia, and by two notches ratings on Cyprus, Italy, Portugal, and Spain. The ratings firm affirmed long-term ratings on Belgium, Estonia, Finland, Germany, Ireland, Luxembourg, and the Netherlands. Each of the countries has been removed from S&P’s CreditWatch, where they were placed with “negative implications” in December.

France and Austria had their credit downgraded a single notch, from the coveted AAA rating to AA+.