Rating service agency Standard & Poor’s released a report Thursday, downgrading Spanish long-term sovereign credit rating by two grades from “A” to “BBB+” and putting the rating outlook on the “negative” list. Also read: Rating cut on nine autonomous regions of Spain.
Standard & Poor’s said in this report the downgrade reflected the agency’s concerns about the enhancement in the risk of the Spanish government treasury bonds, given the the country is currently facing the predicament that the possibility of economic downturn and the banking sector needs to obtain additional support is rising.
At the same time, Standard & Poor’s also lowered the outlook for Spanish GDP this year from the originally expected growth of 0.3 percent to a decline of 1.5 percent.