Skip to comments.S&P Downgrades Spain One Notch, Citing Economic Woes
Posted on 10/13/2011 4:49:06 PM PDT by TigerLikesRooster
S&P Downgrades Spain One Notch, Citing Economic Woes
OCTOBER 13, 2011, 7:13 P.M. ET
DOW JONES NEWSWIRES
Standard & Poor's Ratings Services on Thursday downgraded Spain a notch, citing increasingly unpredictable financing conditions that could squeeze a private sector already pressured by lackluster economic growth.
The ratings cut is the latest blow to a large European sovereign's credit status after S&P last month downgraded Italy a notch, citing many of the same problems afflicting euro-zone economies.
S&P expects the Spanish economy will grow at about 1% in real terms next year, a drop from the 1.5% pace it forecast in February.
In downgrading the Iberian nation, S&P cited growing challenges for Spain's private sector as it seeks fresh external financing to roll over high levels of external debt.
S&P now rates Spain at double A-minus, three steps below the top triple A rating. Its outlook is negative.
S&P also sees the quality of assets held in Spain's financial institutions deteriorating after a separate review of its banking system found it posed additional challenges to the broader economy.
(Excerpt) Read more at online.wsj.com ...
But, but, how can that be? Spain invested heavily in alternative energy! ;-)
There are talks of a Chinese hard landing, concerns over the U.S. economic recovery, and tensions between North and South Korea.
But in his new note titled Issues Which Keep Me Up At Night, Nomura geopolitical analyst Alastair Newton is concerned with one matter above all:
Apparently, Europe needs to amputate the southern region from its economy.
they need to amputate socialism
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