View more on these topics

Spain and Italy face further ratings downgrades

Moody’s has downgraded the rating of Spain’s government bonds by two notches, citing the fact that no credible resolution has been found for the eurozone debt crisis.

Moody’s, which cut Spain’s rating from Aa2 to A1 with a negative outlook, also said that the difficulties faced by the Spanish banks wanting to borrow money meant it had further scaled back its growth forecast for the country.

The move comes only two days after Standard and Poor’s made the same decision. Moody’s said it would downgrade Spain further if any new government that emerged from next months’ elections did not continue plans to reduce the deficit.

Moody’s also threatened to change its outlook on France’s AAA rating from stable to negative.

Meanwhile, Standard and Poor’s has cut the credit rating of 24 Italian banks and financial institutions, pointing to eurozone concerns and dimming growth prospects.

S&P says the outlook for Italy was not easily reversible and that Italy’s bank would have to pay more to borrow money for many years.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com