Moody’s cuts Spanish regions

Mood

Moody’s last night cut the debt ratings of five Spanish regions, after maintaining its rating on the country at one level above junk last week. Andalucia, Extremadura, Castilla-La Mancha, Catalunya and Murcia have seen their ratings lowered by one or two notches thanks to “very limited cash reserves… and their significant reliance on short-term credit lines to fund their operating needs”, Moody’s said in a statement.