Spain’s Credit Rating Downgraded
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.
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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.
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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
