Spain Sovereign Credit Rating Cut to AA+ From AAA by S&P

Credit Rating agency Standard & Poor’s announced this morning that it was cutting Spain’s AAA long-term sovereign rating to AA+. The euro fell to a session low of $1.3217 from around $1.3278 after the news was announced, while the yield spread between 10 year Spanish bonds and German Bunds held steady around 114 basis points following the downgrade after rising earlier to a record 122.

Fuller background on all this can be found here.

This entry was posted in A Fistful Of Euros, Economics and demography by Edward Hugh. Bookmark the permalink.

About Edward Hugh

Edward 'the bonobo is a Catalan economist of British extraction. After being born, brought-up and educated in the United Kingdom, Edward subsequently settled in Barcelona where he has now lived for over 15 years. As a consequence Edward considers himself to be "Catalan by adoption". He has also to some extent been "adopted by Catalonia", since throughout the current economic crisis he has been a constant voice on TV, radio and in the press arguing in favor of the need for some kind of internal devaluation if Spain wants to stay inside the Euro. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again".

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  1. Pingback: Spanish Credit Rating Cut « Views From The Ridge

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