Spain sees credit rating downgraded

Spain has had its credit rating cut by Moody's this week, following similar decisions from other agencies Standard & Poor's and Fitch Rating.

Moody's downgraded the south European nation by two notches, from A2 to A1, noting that this decision was partly due to "the downside risks from a potential further escalation of the euro area crisis".

The Spanish government stated that it believes the ratings downgrade is based more on the short-term problems in Europe, rather than the "long-term fundamental outlook" for the country.

Politicians have put together a number of measures to help reduce the nation's deficit, although slow economic growth and high unemployment are still issues.

Meanwhile, Spain's property sector suffered from further house price declines during the third quarter of the year, the Ministry of Public Works announced earlier this week.

According to the report, the value of real estate in the country fell by an average of 5.5 per cent in the three months from July to September.
 

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