Excellent Hair Fall Treatment
Search: Look for:   Last 1 Month   Last 6 Months   All time
Home :: World

S&P cuts Spain rating

United States America,Business/Economy, Fri, 27 Apr 2012 IANS

New York, April 27 (IANS/EFE) Standard & Poor's Thursday reduced its long-term sovereign credit rating on Spain by two notches to BBB+ from A, expressing concern about the country's large volume of debt and shrinking economy.

 

"(W)e think risks are rising to fiscal performance and flexibility, and to the sovereign debt burden, particularly in light of the increased contingent liabilities that could materialize on the government's balance sheet," the rating agency said in a statement.

 

S&P said it now appears Spain will take longer than originally expected to reduce its budget deficit and that the government in Madrid may have to provide more help to the country's troubled banking sector.

 

The agency also offered a more pessimistic forecast for economic growth in Spain, calling for gross domestic product to shrink 1.5 percent this year and an additional 0.5 percent in 2013.

 

At the same time, the rating agency expressed confidence that "the Spanish economy is rebalancing, and the measures the government has taken should facilitate this process".

 

S&P is less confident that Prime Minister Mariano Rajoy will be able to bring down Spain's budget deficit to 5.8 percent of GDP this year and 3 percent of GDP in 2013.

 

"In our opinion, these targets are currently unlikely to be met given the economic and financial environment. We forecast a budget deficit of 6.2 percent of GDP in 2012 and 4.8 percent in 2013," the agency said.

 

--IANS/EFE

 

rd

 


LATEST IMAGES
King of Bhutan, the Bhutan Queen and Crown Prince meeting the PM Modi
PM Narendra Modi welcomes the King of Bhutan
PM Modi paying tributes at the portrait of Sardar Vallabhbhai Patel
People take part in the Run For Unity on the Rashtriya Ekta Diwas
PM Modi flagging off the Run For Unity on the Rashtriya Ekta Diwas
Post comments:
Your Name (*) :
Your Email :
Your Phone :
Your Comment (*):
  Reload Image
 
 

Comments:


 

OTHER TOP STORIES


Excellent Hair Fall Treatment
Careers | Privacy Policy | Feedback | About Us | Contact Us | | Latest News
Copyright © 2015 NEWS TRACK India All rights reserved.