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Montevideo, May 25th 2019 - 09:36 UTC

Moody’s downgrades Spain’s sovereign debt rating

Thursday, March 10th 2011 - 17:56 UTC
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Fears that restructuring the banking system will further increase public debt Fears that restructuring the banking system will further increase public debt

Moody's Investors Service on Thursday slashed Spain's sovereign debt rating by a notch to Aa2 with a negative outlook, saying it was uncertain about the country's ability to improve its finances.

In a statement, Moody's said it had also taken action because it feared Spain's massive bank restructuring plan would cost too much.

The statement said Moody's expected “the eventual cost of bank restructuring will exceed the government's current assumptions, leading to a further increase in the public debt ratio”.

It voiced “concerns over the ability of the Spanish government to achieve the required sustainable and structural improvement in general government finances, given the limits of central government control over the regional governments' finances”.

It also cited “the background of only moderate economic growth in the short to medium term”.

Moody's removed Spain's top Aaa rating in September last year and said in December it was looking at a further downgrade.
 

Categories: Economy, International.

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  • Fido Dido

    Roasted PIIGS.
    Portugal: Pending
    Ireland: Well done
    Italy:Pending
    Greece: Well done
    Spain: Pending

    Mar 10th, 2011 - 07:23 pm 0
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