Fitch Downgrades Spain’s Sovereign Debt Rating To BBB
Spain (WIBX) – As Spain faces mounting debt problems, the credit rating company, Fitch, is downgrading the country’s sovereign debt rating.
According to NPR, Fitch dropped Spain’s rating to BBB with a negative outlook, leaving the country only two ratings above junk bond status.
A sovereign credit rating is given to countries based on the risk level associated with investing in that country.
In perspective, Utica also has a Fitch bond rating of BBB, but with a stable outlook. Currently, the city has no reserve funds and has had to raise taxes ten percent. Though Utica is not a country, the situation is similar.
N-P-R reports that Fitch is estimating Spain will need between 60 and 100 billion euros to inject energy into the country’s banks.
You can read NPR’s story here.