Deeper issues continue to plague that region’s financial system
The probability of multiple defaults by euro area countries is no longer negligible
Downgrades follow move to cut country’s sovereign ratings to junk status
Rating agency cites large fiscal imbalances, high debts and poor economic outlook
The political situation is very difficult to predict, raising the level of uncertainty and risk
Eurozone could slip into recession
The market is viewing troubled balance sheets as defaults in all but name; don’t believe the negative hype
“It is tough, and will be tough going forward,” says one fund manager
The U.K.’s potential exit from the EU could create further obstacles to reform
