Moody's Confirms Spain's Rating, Outlook Negative
After several months of review, Moody's (NYS: MCO) has maintained its rating of Baa3 -- its lowest level of investment grade -- on Spain's government bonds, it announced in a press release yesterday. However, the agency introduced a negative outlook to that score.
The press release explained that the decision to keep the debt-plagued nation at investment grade status was due to the demonstrated willingness of the European Central Bank to buy those bonds in order to alleviate price volatility, and the likelihood that the country will apply for a credit line from the European Union's Financial Stability Mechanism. Other reasons cited were the government's efforts to implement fiscal and structural reforms, and its progress in supporting and restructuring domestic banks.
Moody's added that it introduced its negative outlook because overall risk remains high for Spain.
According to a Reuters report, the reaffirmed rating broadly matches those from the other two of the "big three" rating agencies; Fitch currently grades Spanish government bonds a BBB with a negative outlook, while Standard & Poor's rates them a straight BBB-minus.
The article Moody's Confirms Spain's Rating, Outlook Negative originally appeared on Fool.com.
Eric Volkman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Moody's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
