According to ForexLive, the downgrade was to AA+.This is NOT what the world needed heading into this weekend.
Check out what the news did to US markets (Update 1:33 ET: We’ve come back a little). Update 2:01: And now we’re getting hammered again…
From MarketWatch, here’s what Fitch said in its statement:
The downgrade reflects Fitch’s assessment that the process of adjustment to a lower level of private sector and external indebtedness will materially reduce the rate of growth of the Spanish economy over the medium-term,” said Brian Coulton, the head of EMEA sovereign ratings, in a statement. “Despite government debt and associated interest costs remaining within the AAA range, Fitch anticipates that the economic adjustment process will be more difficult and prolonged than for other economies with AAA rated sovereign governments, which is why the agency has downgraded Spain’s rating to AA+,”