Spain Cut Three Steps to Baa3 by Moody’s on Debt Level
By John Detrixhe - Jun 14, 2012 12:34 AM GMT+0300
Spain’s credit rating was downgraded three steps by Moody’s Investors Service, citing the nation’s increased debt burden, weakening economy and limited access to capital markets.
The country was cut to Baa3 from A3 and is on review for further downgrade as it plans to borrow 100 billion euros ($126 billion) from European Union rescue funds to recapitalize its banking system, adding to the government’s debt load, New York- based Moody’s said today in a statement. Spanish Prime Minister Mariano Rajoy requested the rescue on June 9.