January 19, 2009

S&P lowers Spain’s long-term credit rating

Standard & Poor's lowered Spain's long-term sovereign credit rating Monday, claiming its public finances will decline along with its outlook for growth.

The rating service downgraded Spain's long-term credit score from AAA to AA+, MarketWatch reported.

The downgrade reflects our expectations that public finances will suffer in tandem with the expected decline in Spain's growth prospects and the policy response may be insufficient to effectively counter the related economic and fiscal challenges, the rating service said.