After S&P warned of the downside pressure on the euro area nations' ratings from the deepening crisis Moody's followed the same rhetoric.

Moody's Investors Services said that the rapid escalation of the debt and banking crisis is threatening the regions sovereign ratings.

The agency said that the EU policy makers need to take decisive and quick action to restore confidence as the credit risk continues to rise. Moody's said in a statement in the absence of major policy initiatives in the near future which stabilize credit market conditions, or those conditions stabilizing for any other reason, the point is likely to be reached where the overall architecture of Moody's ratings within the euro area, and possibly elsewhere within the EU, will need to be revisited adding that they expect to complete such a repositioning during first quarter of 2012.