Moody's cuts Belgium rating

Moodys cut Belgiums credit rating by two notches, citing tough conditions for in-debt European countries to borrow with little chance of a quick end to the eurozone crisis.Moodys cut the rating to Aa3, with a negative outlook, from Aa1.The firm also cited increasing medium-term risks to economic growth due to ongoing deleveraging in the eurozone. The first driver underlying Moodys decision to downgrade Belgiums debt rating is the fragile sentiment surrounding sovereign risk in the euro area, the agency said.The fragility of the sovereign debt markets is increasingly entrenched and unlikely to be reversed in the near future, it said.Moodys also warned over the Belgian governments potential exposure to liabilities from Dexia, the troubled bank. Belgium, France and Luxembourg decided in October to dismantle Dexia with Belgium agreeing to pay 4.0 billion euros ($5.2 billion) to nationalize its domestic retail unit.The move is the latest in a slew of ratings downgrades to hit European sovereigns and euro area banks.