Spain’s Credit Rating Downgraded

April 28, 2010
By Tracy R Twyman

Europe’s debt crisis spread its contagion to another country Wednesday when a major credit agency downgraded Spain’s credit rating, even as Germany grudgingly moved closer to bailing out Greece from imminent collapse.

The downgrade for Spain was an ominous new blow, coming just as markets were recovering their poise after the double shock Tuesday of a Standard & Poor’s downgrade for Greece — to junk status — and Portugal.

Greece and Portugal, up to now the focus of alarm, are relative economic minnows; Spain’s economy is four times the size of Greece and is considered by some to be too big to rescue.

The agency said it was cutting Spain’s rating to AA from AA+ amid concerns about the country’s growth prospects following the collapse of a construction bubble.

From AP: Spain downgraded, Europe debt crisis widens

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