Standard and Poor's downgraded Spain's credit rating on Friday citing sky-high private debt, weak economic growth and towering unemployment.Importantly, the New York-based agency also predicted Spain would miss its targets to cut the public deficit in 2011 and 2012, a grave concern for financial markets.The downgrade reinforced worries about leading actors in the eurozone debt crisis just as financial czars from the Group of 20 leading economies gathered in Paris for tense pre-summit talks.
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.
Standard & Poor's downgraded the credit rating of the city of Barcelona and the Madrid region on Monday, a further blow to Spain whose sovereign rating was lowered last week due to its huge debts.The credit rating agency cut the two ratings by one notch from AA to AA-, with a negative outlook, in line with Spain's long-term rating.In both cases it cited "Spain's uncertain growth prospects" due to high debts and persistent unemployment.