Ratings agency Moody's has put Spain's credit rating on review due to concerns over the country's mounting debt.
The threat of a downgrade, which comes after the rating agency cut the country's sovereign debt rating from triple-A to Aa1 in September, will further escalate euro contagion fears after Ireland's €85bn bailout. Markets across Europe fell in response to the rating agency's action, with London's FTSE down 0.3%, Germany's Dax slipping 0.5% and France's Cac 40 sliding almost 0.7%. Barclays is the FTSE's worst performer, down almost 3%. The euro also lost ground against the dollar and sterling after Moody's announcement. Yields on Spanish bonds rose today, too, in an indication investo...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes