Moody's downgrades Spain credit rating

Moody's put Spain's credit outlook at negative, warning more downgrade risks in the future, after Standard & Poor's took a similar move days ago.

The ratings agency said in a statement that Spain's continuing vulnerability to market Stress and event risk, moderate economic growth prospects and difficulties in achieving fiscal targets were the three main drivers for the downgrade, expressing its disappointment of Spain's and the European Union's handling of sovereign debt crisis so far.

"Since placing the ratings under review in late July 2011, no credible resolution of the current sovereign debt crisis has emerged and it will in any event take time for confidence in the area's political cohesion and growth prospects to be fully restored"; Kazinform cites Xinhua.

To learn more go to www.xinhuanet.com/english2010