This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Moody's Confirms Spain's Rating, Outlook Negative

The Associated Press

Moody's Investors Service on Tuesday confirmed its rating on Spain's government debt but assigned a negative outlook, signaling that a downgrade is still possible in the coming months.

The rating agency said Spain's efforts to improve its financial position and the European Central Bank's willingness to lend support should give the government the time and flexibility it needs to stabilize its public debt over the next few years.

It cited the government's commitment to measures that are helping bring Spain's debt burden under control. Spain has introduced a batch of austerity measures and financial and labor reforms to try to convince EU partners and investors that it is serious about getting its finances in shape.

Moody's kept Spain's rating at "Baa3", its lowest investment-grade rung.

The negative outlook reflects Moody's recognition that the risks are still high for the financially troubled country. Spain's rating could be undercut by a lack of progress toward stabilizing the country's finances, or by external factors, such as Greece exiting the 17-country bloc that uses the euro, Moody's said.

The move by Moody's comes after rival agency Standard & Poor's last week downgraded its rating on Spain's, leaving it also just one notch above junk status. S&P said the country's deep recession, high unemployment and street protest were limiting the government's options to deal with the financial crisis.

Spain's government and banks are struggling through the country's second recession in three years, with unemployment at roughly 25 percent. The government is also deciding if it will request a bailout from the European Central bank.

Rating agency reviews indicate how risky an asset is to hold and can have an impact on its ability to borrow money at competitive rates.

S&P also said the government's hesitation in requesting a bailout was raising the risk of its rating. While some expected that would nudge the Spanish government toward making a bailout request sooner rather later, it's unclear how Moody's decision will affect its temperament.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs