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Moody’s mulls cutting Spanish triple-A rating
MOODY’S Investors Service said yesterday it was reviewing Spain’s ratings and may lower them by as much as two levels due to sliding growth expectations and mounting fiscal challenges.
The ratings agency, the only major agency that still maintains a top rating for Spain, said it was conducting a three-month review of the country’s triple-A local and foreign currency government bond ratings.
The rating agency also cited concerns over the impact of rising funding costs over the medium term. “If at the conclusion of the review, Spain’s ratings are lowered, it would most likely be by one, or at most two, notches,” Moody’s said.
Spain has been the target of speculation in sovereign debt markets.