Moody’s yesterday warned that it had put Spain on review for a downgrade on its sovereign debt due to its refinancing needs over the next year.
But the ratings agency added that it does not expect the country will need a bailout, saying it “does not believe Spain’s solvency is under threat”.
Spain will need to refinance €210bn’s (£178bn) worth of debt next year, according to Goldman Sachs, and Spanish banks’ refinancing needs will hit €35bn.
Stocks and the euro fell after Moody’s warning: the Eurostoxx 50 closed down 0.69 per cent, while the euro had dropped 0.7 per cent against the greenback by yesterday evening. However, bond investors appeared reassured: the yield on 10-year Spanish debt closed down at 5.5 per cent.