Rating agency Standard & Poor's on Wednesday said that Spain's sovereign ratings would be unaffected if the government asks for a full bailout as it struggles to meet its fiscal responsibilities.
Source: Reuters
Rating agency Standard & Poor's on Wednesday said that Spain's sovereign ratings would be unaffected if the government asks for a full bailout as it struggles to meet its fiscal responsibilities.
Spain has already asked for help for its struggling banks but has so far not asked for a full bailout, even as its 10-year government bond yields pierced 7% in recent weeks, a level many consider unsustainable.
"Should Spain decide to request a full bailout, this would, in our view, constitute an official acknowledgement that the government is facing ongoing risks to financing itself in the capital markets at sustainable rates," S&P said in a statement.
"However, we think that the potentially advantageous terms Spain could receive under a full bailout could enhance the chances of success of Spain's already ambitious and politically challenging fiscal and economic reform agenda."
S&P rates Spain BBB-plus with a negative outlook. Moody's Investors Service rates Spain Baa3, and Fitch rates the country BBB. All three of those ratings are investment grade, albeit not by much.
No comments:
Post a Comment