The credit ratings agency Moody’s has downgraded five Spanish autonomous regions with Andalucia achieving the status colloquially known as ‘junk’. Extremadura also suffers the same fate. Castilla-La Mancha, Cataluña and Murcia, already ‘junk’ status, saw their credit-worthiness fall even further down the pan.
Eight Spanish banks ‘on review’
The credit ratings agency Fitch has warned that eight Spanish banks are ‘on review’ for a possible reduction in their credit ratings, mainly due to the profound adverse effect the eurozone crisis is having on economic and financial stability.
More downgrades on the horizon
Spain and Italy have been warned to brace for a debt downgrade after a leading rating agency concluded that a ‘comprehensive solution to the eurozone crisis is technically and politically beyond reach’.