Moody's Investors Service has cut the sovereign credit ratings of six European countries, including Spain, Italy and Portugal.

The international credit rating agency slashed the sovereign credit rating of Spain by two notches from A1 to A3 on Monday, local time. Italy was dropped from A2 to A3 and Portugal fell from Ba2 to Ba3.

Moody’s also lowered its outlook for Britain, France and Austria from ‘stable’ to ‘negative’ but maintained their Aaa ratings.

The ratings company explained that the reasons for the adjustment stem from the uncertainty of the euro area’s prospects for institutional reform and Europe's increasingly weak macroeconomic outlook.