Fitch warns of Greek euro exit effect on local authorities

(PARIS) - Fitch ratings agency warned on Friday, two days before key elections in Greece, that a Greek exit from the eurozone could effect the ratings of regional and local authorities across the eurozone.

"In the event of a Greek exit from the eurozone all Eurozone sovereigns would initially be placed on Rating Watch Negative," Fitch said meaning that a credit rating downgrade could then be imminent.

"In that event, the ratings of about 120 local and regional governments" and public utilities across the eurozone would also be subject to an imminent downgrade.

Fitch stressed that the "magnitude of the impact" of the a Greek exit from the euro "would depend on each (eurozone) country's specific sensitivity to the ongoing crisis".

Fitch said that the agency's base case forecast remains that Greece will not leave the eurozone whatever the result in a Sunday legislative election where the anti-austerity Syriza party is thought to be in a dead heat with New Democracy conservatives.