Spain's credit rating was downgraded three steps by Moody's Investors Service, citing the nation's increased debt burden, weakening economy and limited access to capital markets.
The country was cut to Baa3 from A3 and is on review for further downgrade as it plans to borrow 100 billion euros ($126 billion) from European Union rescue funds to recapitalize its banking system, adding to the government's debt load, New York-based Moody's said today in a statement. Spanish Prime Minister Mariano Rajoy requested the rescue on June 9.
The key reason for the downgrade "is obviously the need of Spain's government to ask for external help," Kathrin Muehlbronner, a London-based senior analyst with the sovereign group at Moody's, said in a telephone interview. "In our view, that's not a sign of strength, it's a sign of weakness."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
