Chavon Sutton
CNNMoney
April 28, 2010

  • A d v e r t i s e m e n t
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Standard and Poor’s downgraded the sovereign debt ratings of Spain to a lower investment grade status Wednesday, citing “risks to budgetary position” for the troubled European nation.

Spain’s long-term sovereign debt rating was reduced to “AA” from “AA+.” The short-term rating was left unchanged at “A-1+.”

The downgrade primarily reflects S&P’s revision of the country’s economic outlook. The ratings agency reduced Spain’s 2010-2016 economic growth forecast to an annualized rate of 0.7% from a previous 1%.

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