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Fitch Ratings on Friday issued twin cuts to two of the euro zone's largest economies as it downgraded its foreign and local currency ratings on Italy and Spain. The cut on Italy—to A-plus from double-A-minus—leaves the ratings four steps down from the coveted triple-A designation. The outlook is negative. Alongside a broader debt crisis sweeping the euro zone, Fitch noted that Italy's high level of public debt and low rate of potential growth renders the regions' third-largest economy especially vulnerable to external shocks. On Tuesday, Moody's Investors Service slashed Italy's government bond ratings by three notches, citing a fragile market mood and mounting political uncertainty that could make raising debt more difficult. In a statement, the Italian government said the downgrade by Fitch was expected and "above all a reflex of an uncertain climate that is sweeping the euro zone." Pointing to Spain, Fitch lowered its foreign and local currency ratings two notches to double-A-minus from double-A-plus, pushing the ratings three steps down from triple-A. As cause for the cut, Fitch also cited an intensifying euro-zone crisis, adding that the firm expects Spain's annual economic growth to remain below 2% through 2015 and unemployment to remain high. Meanwhile, Fitch said its ratings on Portugal remain on watch for downgrade, and it intends to resolve its review in the fourth quarter, The review will look at the country's 2012 budget, risks to the banking system and its medium-term economic and fiscal prospects, among other things. Its foreign-currency rating is currently triple-B-minus, which is the lowest level of investment-grade territory.