More Pain for Spain, More Trouble for Euro
After the bell on Wednesday, Standard & Poor's came out of left field and cut Spain's sovereign debt rating by two notches to BBB-. In doing so, it reminded everyone that the fourth-largest economy in the eurozone continues to be their biggest headache.
The euro fell sharply as a result, even though S&P only brought its rating down to Moody's levels. Back in June, Moody's cut the country's rating to Baa3 and put Spain on review for a downgrade. Its decision was supposed to be made at the end of last month and is now delayed to the end of this month. The European Central Bank's unlimited bond buying program failed to remove the need for a full Spanish sovereign bailout and now with two rating agencies threatening to cut Spain to junk, the pressure is on. ...380 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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