Leading economic rating agency Moody’s today announced its intention to cut the triple-A ratings of a number of European countries. Specifically and most notably; France, Britain and Austria. While at the same time confirming it has downgraded its rating on Italy, Spain and Portugal. The justification was the increasing financial risks from Europe’s growing debt crisis.

Spokesmen from Moody’s had warned Europe’s leaders that major economic reforms are urgently needed in order to deal with the current crisis and prevent further detonation.

Immediately following the announcement the EUR value fell against its main competing currencies.

A total of 6 European countries saw their ratings cut. Italy, Portugal, Slovakia, Slovenia and Malta we’re cut by one notch whilst Spain was cut by two notches signaling an official confirmation of the already known economic instability in the north Mediterranean country.

George Osbourne, Finance Minister in the UK responded to the warning “the country must keep its promise to slash its large budget deficit. This is proof that, in the current global situation, Britain cannot waver from dealing with its debts. This is a reality check for anyone who thinks Britain can duck confronting its debts.”