Spanish Ratings Down, For Potential Poverty.

MADRID Reporting - 'rating agency Fitch Ratings', cut 'credit rating of Spain', due to higher growth prospects of poverty, ie, only one day after the government will make budget reductions to address fears of economic recession.

As a result, the stock market in the U.S. markets slid sharply when the news came last Friday, and the euro weakened against the dollar.

'Fitch' lowered ratings Spain maximum level one level of AAA, AA + to the position. The reason, the Spanish government seems to be focusing on economic recovery.

"The process of economic adjustment will be more difficult, and will last longer than other economy with 'ratings AAA' that carried the Spanish government, that's why the rating of Spain lowered to AA +," said 'Fitch' as quoted from the AFP, Sunday, 30 May 2010.

'Fitch' also warned that the rigidity of labor markets and restructuring of local and regional savings banks will be obstacles hamper the speed of economic recovery, particularly after the bursting of real estate products.

"The private sector external debt, and materials will also slow down economic growth Spain during the medium term," said 'Fitch'. Thank you for visiting (otofinanceinfo)