Fitch, the international credit rating agency, has just downgraded Spain’s credit rating by two notches from AA-plus to AA-minus. This downgrade was done on the heals of the agency downgrading Italy’s rating from A+ to AA-.
All of this only adding to global worries about the euro zone debt crisis.
The credit situation rating for Spain is more worrisome since there is a possibility more downgrades are possible. Fitch kept a ‘negative outlook’ on Spain’s credit in light of the country’s continued economic decline, slow growth and high regional debt.
Italy and Spain are the eurozone’s third and fourth-largest economies and therefore considered cost prohibitive to rescue if need be.