Standard and Poor's downgrades Spain rating

BRUSSELS — Confidence in the eurozone’s economy fell further in April, data showed, strengthening the case for a cut in interest rates this week by the European Central Bank. The eurozone is facing a difficult road out of recession and has seen a souring of the mood among companies and consumers since March, after an optimistic start to the year was disrupted by turmoil in Cyprus and Italy.

The EU has accused Spain of overstating its 2011 budget deficit thus making it easier to make progress in 2012. Furthermore the EU is upset about delays in austerity measures ahead of regional elections next month.

Moody's ratings agency downgraded Spain's credit rating on Wednesday from Aa2 to to A1, putting fresh pressure on European leaders to take action on solving the eurozone's debt crisis. Standard & Poor's downgraded Spanish debt last week.

Spain is on track to miss key targets for economic growth and deficit-cutting in 2011, analysts say, a grim scenario that is pounding its credit rating.Standard & Poor's downgraded Spain's credit rating Friday by a notch to AA-minus, a week after its rival Fitch Ratings sliced the rating by two notches to the same AA-minus level.Both agencies judged the outlook to be "negative," meaning there is a risk of more cuts ahead.