Fitch sees slower pace of rating upgrades in euro zone

LONDON, June 20 Fri Jun 20, 2014 6:48am EDT

LONDON, June 20 (Reuters) - The pace of rating upgrades in the euro zone will be slower in future as fiscal progress remains sluggish, Fitch's global head of sovereign ratings James McCormack said on Friday.

Fitch, Moody's and Standard & Poor's have in recent months upgraded the ratings of peripheral euro zone countries such as Ireland and Spain as the bloc emerged from recession and concerns about the sovereign debt crisis receded.

"To move the ratings higher from here it's not going to depend on where the bond market trades and where the yields are," McCormack told Reuters Insider Television.

"It's going to be on the credit fundamentals. And there we're not seeing a whole lot of progress on the fiscal side so that's going to be a much slower progress." (Reporting by Emelia Sithole-Matarise and Marius Zaharia; Editing by Marius Zaharia)

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