Results 1 to 8 of 8
  1. #1
    loob lor geezer
    Bangyai's Avatar
    Join Date
    Feb 2009
    Last Online
    02-05-2019 @ 08:05 AM
    Location
    The land of silk and money.
    Posts
    5,984

    Fitch downgrades Spain's credit rating

    Spain's economic woes deepened on Friday after Fitch downgraded the country's credit rating in a move that could provoke further panic in global stock markets.

    By Angela Monaghan
    Published: 9:16PM BST 28 May 2010


    Spain has become embroiled in a debt crisis that began in Greece, but has spread to other eurozone countries with large deficits Photo: Reuters

    Standard & Poor's lowered Spain's credit rating last month, amid concerns for the country's growth prospects Photo: Reuters


    The downgrade, from AAA to AA+, was prompted by Fitch's view that Spain's growth will be hampered by a 15bn (12.7bn) austerity package as it attempts to lower its deficit.

    Fitch made the announcement after European markets had closed, but the news drove the Dow Jones in the US down 1pc to 10148.



    "The downgrade reflects Fitch's assessment that the process of adjustment to a lower level of private sector and external indebtedness will materially reduce the rate of growth of the Spanish economy over the medium-term," said Brian Coulton, Fitch's head of EMEA sovereign ratings.
    "Despite government debt and associated interest costs remaining within the AAA range, Fitch anticipates that the economic adjustment process will be more difficult and prolonged than for other economies with AAA-rated sovereign governments, which is why the agency has downgraded Spain's rating to AA+."
    Spain has become embroiled in a debt crisis that began in Greece, but has spread to other eurozone countrieswith large deficits. Spain has outlined plans to reduce its 11pc deficit to 6pc next year, under the close scrutiny of the European Union, which has pushed for tough austerity measures from those countries with high debt levels. Earlier this week the Spanish parliament approved the new austerity package by a one vote margin.
    Standard & Poor's lowered Spain's credit rating last month, amid concerns for the country's growth prospects. This latest move by Fitch will call into question whether the EU's strategy of forcing countries into austerity measures to create stability and appease markets has backfired.
    Fitch said the inflexibility of the labour market, as well as the restructuring of Spain's savings banks, would hinder the rebalancing of the country's economy. It said Spain's government debt is likely to reach 78pc of gross domestic product by 2013, compared with less than 40pc of GDP prior to the financial crisis.
    n Friday, Spain's IBEX 35 closed up almost 1pc at 9425.5, but was down 10.2pc in May as a whole. The FTSE 100 fell 6.74 points to 5188.43, down 6.57pc over the month.
    Fitch said Spain's credit profile remained "very strong and consistent with its 'AA+' rating", but warned volatility in European financial and sovereign bond markets was likely to continue until a global and European recovery was firmly secured.


    Fitch downgrades Spain's credit rating - Telegraph

  2. #2
    Thailand Expat zygote1's Avatar
    Join Date
    May 2010
    Last Online
    20-05-2015 @ 10:43 AM
    Location
    Hua Hin
    Posts
    1,114
    Does this mean that UK visitors to Spain can look forward to reduced prices? If so, that should provide a much needed boost to holiday plans.

  3. #3
    Member
    Bettyboo's Avatar
    Join Date
    Nov 2009
    Last Online
    Today @ 06:13 PM
    Location
    Bangkok
    Posts
    29,847
    & then Portugal, & then Ireland; not looking good for the Euro zone...

  4. #4
    I don't know barbaro's Avatar
    Join Date
    Dec 2005
    Last Online
    @
    Location
    on pacific ocean, south america
    Posts
    21,406
    Fitch is French or American company?

  5. #5
    Thailand Expat
    Takeovers's Avatar
    Join Date
    Nov 2008
    Last Online
    Today @ 03:40 PM
    Location
    Berlin Germany
    Posts
    5,726
    This is a strange one for me, but I am not a financial expert.

    Spain introduces a stringent budget to reduce debt and gets downgraded for damaging its economic outlook.

    ??

  6. #6
    Thailand Expat
    Marmite the Dog's Avatar
    Join Date
    Jun 2005
    Last Online
    08-09-2014 @ 10:43 AM
    Location
    Simian Islands
    Posts
    34,827
    Quote Originally Posted by zygote1
    Does this mean that UK visitors to Spain can look forward to reduced prices?
    We should do seeing as we paid for most of their recent infrastructure.

  7. #7
    ding ding ding
    Spin's Avatar
    Join Date
    Jul 2006
    Last Online
    @
    Posts
    12,608
    Quote Originally Posted by Takeovers
    Spain introduces a stringent budget to reduce debt and gets downgraded for damaging its economic outlook.
    The last few years of "economic growth" were based solely on leverage and debt. New government austerity measures mean that tax revenues and GDP fall at the same time and the government has less money to pay for current debts. It's a vicious cycle that has a nasty ending.

  8. #8
    Banned Muadib's Avatar
    Join Date
    Dec 2005
    Last Online
    @
    Location
    HELL
    Posts
    4,774
    S&P had already downgrades Spain's financial rating some time ago, so Fitch's announcement was showboating with impecable timing... Just in time for the long holiday weekend in the US and spread more fear through the US markets, driving them down as most didn't want to hold long positions into the long weekend...
    Give a man a match, and he'll be warm for a minute, but set him on fire, and he'll be warm for the rest of his life.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •