Investors are wondering where the next shoe may drop after Standard & Poor's revised its outlook on Spain to negative on Wednesday.
"In our opinion, reducing Spain's sizable fiscal and economic imbalances requires strong policy actions, which have not yet materialized," Standard & Poor's said in a statement, adding that the country faced a deeper deterioration in public finances and a longer period of economic weakness than it had expected when it lowered Spain's sovereign rating in January.
These developments come one day after Fitch cut Greece's debt to BBB+ on Tuesday.
The cut was the first time in 10 years a major ratings agency has dropped Greece below an A grade. Fitch cited fiscal deterioration in one of the 16-member currency bloc's most indebted member states.