Spain gets a consensus downgrade rating call from three credit rating agencies – Standard & Poor’s, Fitch Ratings and now even Moody’s on renewed concerns of Spain’s banking system and growing challenges in the euro zone.
In latest, Moody’s Investors Service has slashed Spain’s sovereign rating by two notches to A1 from Aa2, with negative outlook. Spain, which is euro zone’s fourth largest economy, was downgraded last week by S&P by one notch to AA negative, from double A rating.
Furthermore, a fortnight back, Fitch Rating had pronounced a cut in Spain’s creditworthiness by two notches to “AA-”, from AA rating, mire by the region’s continued vulnerability to interest costs and market stress.
Moody’s also reduced the 2012 growth forecast for Spain to 1%, from 1.8%, led by risks of growth slowdown, high borrowing costs and the region’s ability to curb its budget deficits.