“Spain Downgraded To ‘AA’ On Protracted Economic Adjustment And Risks To Budgetary Position; Outlook Negative
- In our opinion, Spain is likely to have an extended period of subdued economic growth, which weakens its budgetary position.
- We are lowering our long-term rating on the Kingdom of Spain to ‘AA’ from ‘AA+’.
- The negative outlook reflects the possibility of a downgrade if Spain’s budgetary position underperforms to a greater extent than we currently
anticipate.”
Read Full Press Release.
Spain 5-Year Credit Default Swaps increased roughly 13 basis points on the news to a spread of 192 basis points according to Bloomberg data. Despite the widening, the current spread is still an improvement from yesterday’s close of 207 basis points.
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