Downgrade warning over Spain credit

Moody’s has warned that it may downgrade Spain’s credit rating over the coming three months because of the country’s weak economic growth prospects as well as ongoing funding pressures.

In a statement, the ratings agency said any reduction of the current Aa2 rating was likely to be limited to one notch subject to there not being any “unexpected development”. A one notch reduction would take the rating down to Aa3, still a healthy investment grade.