Fitch senior director Ed Parker said at a Fitch conference today in Madrid that the agency expects that its review of six euro zone nations is likley to result with downgrades of one to two notches in most of those countries, as it put Belgium, Spain, Slovenia, Italy, Ireland and Cyprus on negative watch on Dec 16, 2011.

As for Spain, Parker said the review would take into account the new government's actions to cut costs and implement reforms, but there are continuing problems with the public finances and bank assets and the labor market is dysfunctional, where the review would be concluded by the end of January.