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Fitch has just downgraded five of Spain’s autonomous communities, although all their debts remain investment-grade.It has assigned all 5 communities a negative outlook.
This is the latest rating agency recommendation calling for the Spanish government to pick up the slack for its municipal regions.
Meanwhile, local and national officials are positioning this whole debate within the framework of the national elections slated for this November.
The opposition Partido Popular is accusing the incumbent Partido Socialista Obrero Español of grossly misstating and mismanaging the regions’ (as well as the country’s) finances. PP will likely trounce PSOE in the vote.
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