S&P cuts Spain credit rating to BBB-minus

  • Standard & Poor's has cut Spain's sovereign credit rating by two notches to BBB-minus with a negative outlook on the back of a worsening economic recession.

    Wednesday’s downgrade reflects the firm's view that significant risks remains towards fiscal growth and budgetary performance, coupled with a lack of a clear direction in eurozone policies.

    S&P's rate cut is in line with Moody's Investors Services, which may downgrade Spain from its Baa3 rating. Fitch Ratings has Spain rated at BBB, one notch higher but with a negative outlook.