Standard and Poor's downgrades Spain rating

Standard & Poor's downgraded Spain's credit rating Friday, blaming economic malaise and dim prospects.

From NY Fed President William Dudley: The Road to Recovery: BrooklynOn the national economy:[E]conomic growth so far this year has been disappointing. Real GDP in the first quarter of 2011 grew at a tepid 1.8 percent annual rate, and the available data suggest that growth in the current quarter will not be much better.

Standard and Poor's ratings agency upgraded its outlook for Spanish debt on Friday, highlighting the prospect of an export-led recovery after a two-year recession.The New York-based agency kept Spain's long-term credit rating at BBB minus, just a notch above junk bond status, but raised the outlook to "stable" from "negative".Also Friday The Netherlands its coveted "AAA" rating as S and P downgraded the country's rating to "AA+", citing weakening growth prospects.

Standard & Poor's on Monday downgraded the ratings of nine Spanish banks, including Santander and BBVA, after slashing the country's credit standing because of worsening deficit and growth problems.The banks affected include Santander and its subsidiary Banesto, BBVA, Banco Sabadell, Ibercaja, Kutxabank, Banca Civica, Bankinter and the local unit of Barclays. S&P on Friday cut Spain's sovereign debt rating by two notches to BBB-plus.

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.