Spain’s sovereign credit rating has been down graded by Standard & Poor’s for a second time this year. It’s been cut from an A to a triple-B plus.
The move comes as Spain’s government is pushing through the deepest budget cuts in at least three decades including massive reductions in the sacred areas of health and education.
However the credit rating reduction is due to concerns that the nation will have to provide further fiscal support to its banking sector as the economy inevitably contracts.
With GDP having shrunk to 0.4 per cent in the first quarter, Spain is now in its second recession since 2009.