Credit ratings agency Moody’s has downgraded Spain’s credit rating two notches, following in the footsteps of a recent Standard & Poor’s downgrade for the country.
Speaking about the recent downgrade the agency said:
“Spain continues to be vulnerable to market stress and event risk.”
The agency goes on to note that the European debt crisis has remained unresolved which in turn make Spain’s prospects look less than stellar.
In the meantime France has retained their triple-A credit rating although Moody’s says the country is the weakest of Europe’s current triple-A rated nations.
France’s president Nicolas Sarkozy in the meantime says he will press for “bold action” at this weekend’s EU summit as he addressed the debt crisis, noting:
“Allowing the destruction of the euro is to risk the destruction of Europe,” while he added, “Those who destroy Europe and the euro will bear responsibility for resurgence of conflict and division on our continent.”
Are you surprised that Spain’s rating has taken a hit and France may soon follow?
