BBC News with Sue Montgomery

A day of heavy fighting has left forces loyal to the interim authorities in Libya in control of most of the city of Sirte, the last significant stronghold of Colonel Gaddafi's supporters. The BBC's Jonathan Head is in the city. He sent this report on the day's events.

It began with an intense rocket and

artillery barrage

blasting the buildings around Sirte held by Gaddafi loyalists.

Then after days of delay, the fighters moved in, but they were

pinned down

by well-positioned

snipers

. They directed their heavy machine guns at the snipers and were able to

move forward

, capturing most of the town by midday, but they have sustained casualties.

The commander we were travelling with was hit in the chest and died. Ambulances have been racing back and forth all day from the front line. No one knows how many civilians have been killed or injured. Now the fighters are moving from house to house, clearing out the last of the gunmen.

An international agency has downgraded the sovereign

credit ratings

of Italy and Spain, putting new pressure on two of the eurozone's biggest economies. Both countries have been

relegated

from AA- to A by the credit ratings agency Fitch. It said Europe's debt crisis posed a significant risk to Italy and the government's initially hesitant response had eroded market confidence. Fitch said Spain was threatened by slow growth and high regional debt.