Companies Distance Themselves From Spain (WSJ)

As the credit crisis deepens, corporations are trying to decrease exposure to the country.

Wary of mounting financial problems, major companies are attempting to distance themselves from Spain, the Wall Street Journal reports. ING, the Dutch financial services company, and Securitas, a Swedish security services company, have both said they are looking to reduce their exposure to the depressed country. The International Consolidated Airlines Group announced last week that it was readying itself for the possibility of a Spanish euro-exit.

ING has had a large Spanish presence, but has built a discrepancy between assets and liabilities due to Spanish loans and bonds it has invested in. Securitas has already been cutting back on unprofitable contracts in Spain, but will continue to terminate more to avoid credit risk as the market deteriorates.

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