Moody’s Holds Spain’s Low Rating Unchanged
Moody’s gave Madrid critical breathing room on Tuesday in its efforts to sort out its economic problems, holding the country’s debt rating unchanged at Baa3, one step above “junk” grade.
from Telegraph.co.uk
But the US agency assigned Madrid a “negative outlook,” maintaining a threat to downgrade the country if conditions deteriorate.
Moody’s cited the European Central Bank’s willingness to buy Spanish government bonds to stabilise its borrowing rate as well as the government’s commitment to implementing fiscal and structural reforms necessary to improve its finances.
Moody’s also credited the ongoing efforts to restructure the Spanish banking sector and strengthen the banks.
“In summary, Moody’s believes that the combination of euro area and ECB support and the Spanish government’s own efforts should allow the government to maintain capital market access at reasonable rates, providing it with the time it needs to stabilise public debt over the next few years.”
Continue Reading at Telegraph.co.uk…
2012-10-17 02:21:01
Source: http://financialsurvivalnetwork.com/2012/10/moodys-holds-spains-low-rating-unchanged/
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