Well, nobody should really care what the rating agencies say or do anymore, because they have proved themselves to be utterly useless time and again at anything more than stating the obvious long after it has already been revealed. Such as downgrading Lehman bonds to junk status after the bankruptcy filing.
Still, in a bold aftermarket move on Friday, S&P downgraded the credit ratings of nine Eurozone countries, including stripping France and Austria of their coveted AAA ratings.
It is noteworthy that the action came on a Friday, after the market close, which gives the behind-the-scenes fixers as much time as possible to soothe markets before they open again on Monday.
Mass S&P downgrade as Greek debt impasse hit euro zone
S&P cut the ratings of Italy, Spain, Portugal and Cyprus by two notches and the standings of France, Austria, Malta, Slovakia and Slovenia by one notch each.
The move puts highly indebted Italy on the same BBB+ level as Kazakhstan and pushes Portugal into junk status.
It put 14 euro zone states on negative outlook for a possible further downgrade, including France, Austria, and still triple-A rated Finland, the Netherlands and Luxembourg.
Germany was the only country to emerge totally unscathed with its triple-A rating and a stable outlook.
(Source)
Here’s a handy list:
– France was downgraded from AAA to AA+
– Austria was downgraded from AAA to AA+
– Italy was downgraded two more levels from A to BBB+
– Spain was downgraded two more levels
– Portugal was downgraded two more levels
– Cyprus was downgraded two more levels
– Malta was downgraded one level
– Slovakia was downgraded one level
– Slovenia was downgraded one level
(Source)
In times past, a downgrade was serious business and would result in all sorts of bond selling, some of it of the forced variety as funds that are legally prevented from holding bonds below a certain grade have to dump their holdings.
by dps 
