Moody’s threatens to downgrade Spanish bonds
Published 29/07/2011 | 10:49
Ratings agency Moody’s has put Spanish government bonds on review for a potential downgrade but only a one notch drop is expected.
The agency said any change to the current Aa2 rating would be driven by funding pressures on the Spanish government and plans set out as part of the eurozone Greek bailout.
Any future help that is likely for Greece could put further pressure on Spain which is also suffering from weak economic growth.
Spain has been fighting to convince markets that it should not be lumped together with bailed out economies like Ireland and Greece.
The rating agency also threatened to lower the ratings of four Spanish banks, including the euro zone's largest Santander, as well as the country's confederation of savings banks.