- Jun 28, 2010
Forex Broker---- Moody’s Investors Service, one of the three major international rating agencies, announced on June 30th that in light of Spain’s deteriorating economic situation, it had listed Spain’s AAA sovereignty debt rating onto the watch list of downgrading. It might downgrade Spain’s rating by one or two degrees in recent days.
Up till now, Moody’s Service is the only one of the three major international rating institutes that still gives Spain AAA sovereignty rating. Forex analysts note that with the European debt crisis developing in depth, Moody’s reaction of Spain’s rating is far behind the Standard & Poor’s and Fitch.
A veteran forex analyst of American Brown Brothers said that this move of Moody’s was quite as expected. He commented: “The action of Moody’s Service to downgrade Spain’s rating is already lagged behind.” Spain’s GDP is also 5 times that of Greece. Should Spain suffer from sovereignty debt crisis, the affect would be far greater than the outbreak of Greek crisis.----Forex Broker: IKONFX