Spain's Credit Downgrade Tanks Stocks

Fitch Ratings downgraded Spain's Credit ratings on Friday prompting a sell-off in stocks.

Spain's long-term foreign and local currency issuer default ratings were cut to AA+ from AAA, increasing investor fears about the Europe's economic recovery.

"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.

The Dow Jones Industrial Average ($INDU) was down 128 points or 1.25% in early afternoon trading and the S& P 500 ($INX) was down 14 points or 1.29%.