Standard and Poor's has cut Spain's credit rating from A to BBB+
(ANSAmed) - ROME - Standard & Poor's has cut Spain's credit rating from A to BBB+, adding that the outlook for the country is negative. The ratings agency announced the move in a statement, explaining that the two-level fall in the ratings was the result of a "budget trajectory that is likely to worsen in light of the economic downturn". Analysts at the agency said that they also "see a growing probability for the Spanish government to provide further aid to the banking sector". As a result, "we think that there are increased risks that the net debt of the state sector could rise further," they commented. "The negative outlook accompanying the rating reflects our opinion that growth and budget progress are at significant risk," the statement concluded.(ANSAmed).
