S&P’s has reduced the long-term sovereign credit rating of Spain from A to BBB+ with a negative forecast, RIA Novosti reports.
The short term rating was reduced from A-1 to A-2. S&P’s notes that the state debt problem will aggravate and the program for reduction of budget expenses needs fulfillment.
The agency expects the GDP to reduce by 1.5% in 2012 and by 0.5% in 2013. Earlier forecasts were 0.3% and 1% respectively.
The Central Bank of Spain said on April 23 that serious financial problems and high unemployment caused technical recession.
