S&P warns it may downgrade EU's AAA-rating

Standard & Poor's has said it may downgrade the European Union's AAA rating and make further cuts to eurozone banks' credit ratings if a review of eurozone countries prompts mass sovereign downgrades.

On Monday the ratings agency put 15 eurozone nations including France and Germany on creditwatch negative, citing concerns over policymakers' ability to tackle the sovereign debt crisis. It said it aimed to complete the review as soon as possible after this week's EU summit. It has now placed the European Union's own AAA rating on negative creditwatch and warned of a one notch cut if eurozone countries are downgraded. "Our review will focus on the financial ability of eurozone member states to support the EU's debt service should the institution face a period of financial distress,...