ETF Database submits: Equity markets finished a rough quarter yesterday, as most major indexes fell back sharply after surging higher to start the year. The quarter was especially difficult for Europe and in particular the PIGS of Portugal, Italy, Greece, and Spain.
Yesterday, credit rating agency Standard & Poors revised its credit rating outlook on U.S. sovereign debt to "stable" from "negative." In 2011, S&P was the first of the three major rating agencies to strip the U.S. of its AAA rating (currently, it has the U.S. at AA+).
Moody's rating agency said Wednesday it could cut Spain's credit rating again because of the country's heavy refinancing schedule and problems in meeting its borrowing needs next year.Moody's cut Spain's sovereign debt rating from Aaa to Aa1 in September, adding to the pressures on Madrid and the wider eurozone, and said Wednesday that it could now further reduce the rating.It said in a statement that Spain's solvency was not in question and it would not need external help but heavy financing requirements would likely create fresh tensions on the money markets.
The credit rating firm said negotiations on the nation's 2013 budget and a decision on reducing the high ratio of debt to GDP will be key to acting on its top credit rating.WASHINGTON — Moody's Investor Services warned that it probably would downgrade the Aaa credit rating of the U.S.