• 19 OCT 2011
EurActiv (Spain downgrade ups pressure on EU to act
A double-notch downgrade to Spain's credit ratings yesterday (18 October) has put more pressure on European leaders to make rapid progress on solving the region's debt crisis or face unbearable borrowing costs.
The fresh blow from Moody's Investors Service came just a day after the agency warned France its triple-A rating could be at risk and overshadowed a report that Germany and France were nearer a deal on leveraging the euro zone's rescue fund.
Moody's cut the country's bond rating to A1, from Aa2, the third of the major agencies to act in recent weeks and taking it a notch below the ratings of Standard & Poor's and Fitch.
Moody's reasoning made worrying reading for those hoping for a speedy resolution to country's troubles.
Spain has the fourth-largest economy in the Eurozone.
"Since placing the ratings under review in late July 2011, no credible resolution of the current sovereign debt crisis has emerged and it will in any event take time for confidence in the area's political cohesion and growth prospects to be fully restored," the agency said.
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