Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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 fixed3.50%3.47%
15 yr fixed2.74%2.71%
5/1 ARM3.26%3.00%
30 yr refi3.53%3.50%
15 yr refi2.76%2.73%
Rate data provided
by Bankrate.com
View rates in your area
Find personalized rates:
Index Last Change % Change
Dow 18,169.27 -53.76 -0.30%
Nasdaq 5,283.40 -26.43 -0.50%
S&P 500 2,143.16 -8.17 -0.38%
Treasuries 1.76 -0.01 -0.28%
Data as of 8:14am ET
Company Price Change % Change
Chesapeake Energy Co... 6.11 -0.25 -3.93%
Under Armour Inc 32.89 -5.01 -13.22%
Freeport-McMoRan Inc... 10.55 0.37 3.63%
Bank of America Corp... 16.72 -0.05 -0.30%
Apple Inc 118.25 0.60 0.51%
Data as of Oct 25


Donald Trump has repeatedly said he pays "tremendous" amounts in taxes, but when it comes to his properties, he fights to pay as little tax as possible. And that often comes with a cost to the towns or cities where Trump owns property. More

Food shortages, recession, skyrocketing inflation and a plummeting currency are just a few issues causing Venezuela to dive deeper into crisis. More

Apple's sales declined for the third consecutive quarter, but the company expects to grow again next quarter. More

People flying on Delta can now use the company's app to see where their luggage is in its journey to its final destination. More