Spain downgraded by Moody's

By Aaron Smith, staff writer


NEW YORK (CNNMoney) -- Moody's Investor Service downgraded Spain on Thursday over concerns about its sluggish economy and the central government's questionable ability to control finances throughout the country.

Moody's downgraded the country's government bond ratings by one notch, to Aa2 from Aa1, with a negative outlook.

The rating agency expressed doubts over the Spanish government's ability to improve its finances, "given the limits of central government control over the regional governments' finances as well as the background of only moderate economic growth."

Moody's also attributed its downgrade to the high cost that the Spanish government faces in restructuring its banking system, "leading to a further increase in the public debt ratio."

The agency said that the Spanish government has underestimated the cost of restructuring its banking system, implying that the country may have to borrow more. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed4.31%4.32%
15 yr fixed3.74%3.65%
5/1 ARM4.16%4.02%
30 yr refi4.29%4.29%
15 yr refi3.71%3.62%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 24,964.75 -254.63 -1.01%
Nasdaq 7,234.31 -5.16 -0.07%
S&P 500 2,716.26 -15.96 -0.58%
Treasuries 2.89 0.02 0.56%
Data as of 1:15am ET
Company Price Change % Change
General Electric Co 14.74 -0.31 -2.06%
Bank of America Corp... 31.93 -0.04 -0.13%
Walmart Inc 94.11 -10.67 -10.18%
Advanced Micro Devic... 12.02 0.20 1.69%
Micron Technology In... 44.90 0.69 1.56%
Data as of Feb 20
Sponsors

Sections

If Congress fails to reach an immigration deal, some communities could lose Dreamers who are firefighters, nurses, emergency care workers and teachers. More

Facebook's efforts to prevent people from using its platform to meddle in U.S. politics will rely in part on one very low-tech tool: postcards. More

Since your kids never see cash, here's how help them -- and you -- be savvy with money they can't hold. More