S&P says no rating impact from gloomier euro zone forecasts

Last Updated: Tue, Sep 25, 2012 11:41 hrs

Standard & Poors' new gloomier economic forecasts for the euro zone and its strained members has no impact on the firm's sovereign ratings, a spokesman for the rating agency said on Tuesday.

Economists at S&P further cut their forecasts for the euro zone's economy in 2012 to -0.8 percent from -0.7 percent previously and for 2013 to zero growth from growth of 0.3 percent.

Spain's economy is now seen shrinking 1.8 percent this year and 1.4 percent next year, more than double the firm's previous estimate in July for a 0.6 percent contraction.

Forecasts for Italy were cut to a 2.4 percent contraction this year and 0.6 percent drop in 2013 from previous forecasts for drops of 2.1 percent and 0.4 percent respectively.

"There is no rating impact, the economic forecasts are not directly linked to sovereign ratings," an S&P spokesman said.

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