Eurozone periphery faces downgrades if deflation persists: Fitch

[LONDON] The eurozone's debt-strained countries are likely to see credit rating downgrades if the region suffers a prolonged spell of deflation, one of rating agency Fitch's top analysts said on Thursday.

"There will be material ratings impact if eurozone deflation persists and persists for a long period of time," said Eileen Fahey, the firm's chief credit officer during a conference presentation.

"We would expect first pressure on the peripheral countries where there are high levels of debt-to-GDP that will worsen."

REUTERS