Renewed fears about the fiscal crisis in Europe following credit rating downgrades by Standard and Poor’s are likely to have a limited impact on the Korean market, brokerages said Monday.

France, Austria and seven other European countries saw their ratings go down a notch or two on Friday, raising concerns about the trouble-laden eurozone and its effect on financial markets worldwide.

“The downgrade has been already factored into market prices since Standard and Poor’s put 15 European nations on the watch list in December, so the short-term impact is limited,” said Kim Jie-un, economist at Samsung Securities, in a report issued Monday.

“Caution, however, is warranted because the latest downgrade could undermine the eurozone’s crisis management capability in the mid- and long-term.”

Other analysts in Seoul shared the view that the news itself is not as shocking or unexpected as the downgrade of the U.S. credit rating in August, which shook global markets.

Yoo Ik-sun, economist at Woori Investment & Securities, said the fundamental reason behind Standard and Poor’s decision on Friday is the continued problems with the eurozone’s collective response aimed at softening the “systemic stress.”

“The downgrade is not a new negative factor, but a reminder that the eurozone’s uncertainties remain unresolved,” Yoo said.

Brokerages here said investors might be cautious in the following days as the latest round of credit downgrades could hit the eurozone’s rescue fund.

“Market jitters might go up if the European Financial Stability Facility’s triple-A rating is downgraded as well, which could highlight the eurozone’s reduced firepower for helping out troubled European countries,” said Kim Yoo-mi, economist at KTB Investment & Securities.

Some analysts believe that the EFSF’s 440 billion euro ($382 million) fund is expected to see its credit guarantee limit shrink in connection with Standard and Poor’s decision that affected the credit rating of several countries including France, which accounts for 158.5 billion euros of the bailout fund.

Aside from the specter of a Greek default in March, investors are closely watching the unsustainably high borrowing costs of Italy and Spain.

Another worry is additional downgrades of other European countries. Germany, the Netherlands, Finland and Luxembourg currently maintain their triple-A status.

Korea’s financial market has been under pressure from the eurozone’s extended debt struggle, now entering its third year, with the KOSPI stock index hovering at the 1,820-1870 range in January.

By Yang Sung-jin (insight@heraldcorp.com)