Moody's Threatens Spain Downgrade - WSJ.com: "Moody's Investors Service warned Wednesday it may downgrade Spanish government debt, citing the country's refinancing needs next year and the strain of recapitalizing its debt-strapped banks.
The ratings company put on review for possible downgrade the Aa1 local and foreign-currency ratings on the debt of the Spanish government and the government-guaranteed Fund for Orderly Bank Restructuring (FROB) bank-bailout fund. The move hurt the recently steady euro by highlighting concerns over the spread of the European debt crisis from peripheral countries like Greece to bigger nations closer to the euro-zone core.
Moody's said a downgrade could be triggered by 'Spain's vulnerability to funding stress given its high refinancing needs in 2011,' a problem that 'has recently been amplified by fragile market confidence.'"
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The ratings company put on review for possible downgrade the Aa1 local and foreign-currency ratings on the debt of the Spanish government and the government-guaranteed Fund for Orderly Bank Restructuring (FROB) bank-bailout fund. The move hurt the recently steady euro by highlighting concerns over the spread of the European debt crisis from peripheral countries like Greece to bigger nations closer to the euro-zone core.
Moody's said a downgrade could be triggered by 'Spain's vulnerability to funding stress given its high refinancing needs in 2011,' a problem that 'has recently been amplified by fragile market confidence.'"
DISCLAIMERText may be subject to copyright.This blog does not claim copyright to any such text. Copyright remains with the original copyright holder