Spain credit rating review by Moody’s hits euro

December 15, 2010 05:20

The euro has fallen against key currencies after a credit rating agency said it may downgrade Spain’s debt.

BBC News


Moody’s put Spain’s rating on review – citing concerns about its mounting debt and its funding needs for next year.

Spain has been under financial market scrutiny since the Irish Republic was forced to take an aid package of 85bn euros (£72bn; $113bn) last month.

The news pushed the euro down by 0.5% against the dollar to to $1.3312, while it also fell 0.2% against the pound, with one euro worth 0.8462 pence.

Moody’s cut Spain’s sovereign debt rating from the top, triple-A rating to Aa1 in September.

After the Irish Republic’s bail-out, Portugal was tipped by many as the next casualty, with questions also raised over Italy’s economy, as well as Spain’s.


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