S&P downgrades ratings of France, 8 other euro zone nations

US ratings agency Standard & Poor's has downgraded the sovereign debt ratings of France, Italy, Spain, Austria and five other eurozone nations, but left the credit ratings of European growth engine Germany and Finland in tact at the 'AAA' level.

The downgrades, coming at a time when the European Union states, especially France and Germany, are coordinating relief for debt-ridden euro zone nations like Greece, will in turn affect the countries' ability to stave off a further worsening of the debt crisis.

S&P cut the sovereign debt ratings of nine euro zone countries, including France and Austria (both dropped one notch each to AA+), Italy (down two notches to BBB+ from A), Spain (down to A from AA-) as also those of Portugal, Cyprus, Malta, Slovakia and Slovenia.

S&P also put 14 euro zone nations, including France, Austria, Finland, the Netherlands and Luxembourg, on rating watch for possible further downgrades.

The crucial European Union talks on Friday, however, did not appear to have helped to find a solution to cutting Greece's massive debt pile.

"Today's rating actions are primarily driven by our assessment that the policy initiatives that have been taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the euro zone," S&P said in a statement.