Moody’s Lowered Spain’s Rating - 14.6.2012

Moody’s Investors Service, one of the largest international rating agencies, cut yesterday Spain’s sovereign rating by three steps from “A3” to “Baa3”. The agency explained that the current rating reflects the nation’s economic turmoil, including rising debt burden, weakening growth and narrowing access to capital markets. As Spain is planning to borrow 100 billion euros more from the European Financial Stability Facility or from the European Stability Mechanism to recapitalize its banking system, the rating is on review for further downgrade to speculative notches. The yield of Spanish government bonds with maturities in 10 years climbed to 6.99% today, the highest since introduction of the single currency in 1999.