Moody’s downgrades Spanish government debt ratings
Wednesday, October 19, 2011
NEW YORK (AP) — Moody’s Investors Service is the latest ratings agency to downgrade Spain’s government bond ratings.
Moody’s cut the ratings one notch and issued a negative outlook for the struggling nation’s sovereign debt.
The ratings agency says it is downgrading Spanish debt to “A1” from “Aa2,” four days after Standard & Poor’s cut its rating on the nation’s long-term debt. Fitch Ratings likewise cut Spain’s rating on Friday.
Moody’s says Spain continues to be vulnerable to market stress, and since it began reviewing its ratings in July, no resolution to the debt crisis has emerged.
It also notes that worsening outlooks for global and European growth further hamper Spanish prospects, and will make it harder for the country to achieve its targets for reducing its budget deficit.