Fitch Downgrades Spain, Italy

The ratings agencies are on a rampage today. First Moody's downgraded 12 British banks, then Fitch downgraded Italy and Spain. Fitch kept the outlook for both countries negative, a warning that there may be more downgrades to come. The agency also said it was keeping close watch on Portugal's rating. Fitch cited public debt, low growth, and pressure from the euro-zone financial crisis in its announcement of the downgrades. The move raises doubts about Europe's ability to contain the debt crisis. Italy and Spain are both considered too big to bail out.