Spain Downgraded to One Level Above Junk by S&P on RisksSubmitted by emalvini on Wed, 10/10/2012 - 22:28
Spain Downgraded to One Level Above Junk by S&P on Risks
By Angeline Benoit and Ian Katz
Oct 10, 2012 3:49 PM PT
Spain’s debt rating was cut to one level above junk by Standard & Poor’s, which cited mounting economic and political risks as the government considers a second bailout.
The country was lowered two levels to BBB- from BBB+, New York-based S&P said in a statement yesterday. S&P assigned a negative outlook to the nation’s long-term rating and lowered the short-term sovereign level to A-3 from A-2.
“The negative outlook on the long-term rating reflects our view of the significant risks to Spain’s economic growth and budgetary performance, and the lack of a clear direction in euro-zone policy,” S&P said. “The deepening economic recession is limiting the Spanish government’s policy options.”