The number of companies, governments and other institutions facing downgrades doubled in the first half of 2012, according to Fitch Ratings.
It gave 19.8% of companies under its watch a negative outlook in the first half of this year, most of which are located in the troubled eurozone area, the Telegraph reports.
Six eurozone countries had their ratings lowered by Fitch, including Spain's by five notches and Greece down four.
The number of international public finance organisations at risk of a downgrade over 12 to 18 months also doubled to 48.3% from 22.4% during the first six months of the year.
Financial institutions and banks fared little better, with the number on negative outlook climbing to 19.3% from 10.7%.
Fitch warned the negative forecast was set to continue into the second half of the year.
"Downward pressure on eurozone sovereign ratings will persist until European leaders articulate a credible and substantive road map towards greater fiscal, financial and political integration," it said.
However, on a more positive note, the number of emerging countries downgraded in 2012 H1 declined. Only Hungary and Egypt have suffered a downgrade this year.
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