Fitch expects its ratings review of six euro zone states will result in downgrades of one to two notches in most of those countries, the agency's senior director said today.

Speaking at a Fitch conference in Madris, Ed Parker said the review would be concluded by the end of January.

Fitch put Belgium, Spain, Slovenia, Italy, Ireland and Cyprus on negative watch late last year on December 16th. The agency told the euro zone at the time that it thought a comprehensive solution to the region's debt crisis is was beyond
reach.

Rating agency peer Standard & Poor's cut ratings on a swathe of euro zone states earlier this month.As for Spain, Parker said the review would take into account the new government's recent actions to cut costs and implement
reforms, but said "there are continuing problems with the public finances and bank assets and the labour market is
dysfunctional".

Reuters