Rating agency Moody's has warned that the credit rating of all EU countries is threatened by the current financial crisis.
In a special commentary, the agency warned that in the absence of policy measures that stabilise market conditions, credit risk will continue to rise.
The agency has warned that the probability of multiple defaults by euro area countries is high.
The agency also cautioned that any defaults will "significantly increase" the likelihood of one or more members leaving the Eurozone.
It comes amid denials from the German finance minister that the german government is looking at setting up a core group of eurozone countries, separate from the rest.