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article imageGreece, Spain credit ratings downgraded by Standard & Poor's

By Andrew Moran     Apr 28, 2010 in Business
Athen - Standard & Poor’s Rating Services recently downgraded the crediting ratings of three nations belonging to the PIIGS: Portugal, Greece and Spain, due to the growing fiscal crisis in each of the European countries.
Standard & Poor’s Rating Services have downgraded the credit ratings of Portugal, Spain and Greece this week amid the growing problem of deficits and debt, which is also causing markets around the world to decline, according to The Canadian Press.
In a statement, the ratings service downgraded Portugal’s credit rating status to A-minus, lowered Greece’s government to junk status to double-B-plus and lowered Spain’s long-term sovereign credit rating to AA and added that their financial future looks bleak.
“In our opinion, Spain is likely to have an extended period of subdued economic growth, which weakens its budgetary position,” the agency said, reports the Financial Post.
The statement went on to state that Portugal remains weak and that its government could struggle to maintain its high debt ratio until 2013. S&P added that Portugal’s external financing affected its economic growth. The only solution Portugal has is to institute fiscal consolidation.
Arirang reports that Greece’s downgrade was due to the country’s recent request of $60 billion from the European Union and the International Monetary Fund.
“Everyone now understands that there is no more time for delay. The idea of restructuring debt is outside every negotiation. I am categorical on this point,” said Greece Finance Minister George Papaconstantinou on an evening television news program.
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