Moody’s Downgrades Spain

Spain’s rating lowered three notches, to Baa3, on growing debt burden.

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.

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