Published: 12:30PM Thursday October 11, 2012 Source: Reuters
Demonstrators in Madrid protest against austerity cuts. -Source: Reuters
Standard & Poor’s has cut Spain’s sovereign credit rating to BBB-minus, just above junk territory.
The credit ratings agency cited a deepening economic recession that is limiting the government’s policy options to arrest the slide.
The S&P downgrade comes with a negative outlook reflecting the agency’s view that there are significant risks to economic growth and budgetary performance, plus a lack of clear direction in euro zone policies.