Forex Flash: S&P looks at Spain's rating, one notch down means junk - TD Securities
FXstreet.com (Barcelona) - Despite the good news coming from Greece as lenders get closer to an agreement, market became fearful after watching S&P downgrading three Spanish banks and stating that the "negative outlook on Spanish banks reflects likelihood of further sovereign downgrade".
"With S&P currently holding Spain's rating at BBB-, even a one notch downgrade would push S&P's rating into junk status", wrote Global Strategist Tim Davis, adding that concerns swept back as the German IFO came in higher than expected and pointing to widening Spanish spreads to Bunds.
"With S&P currently holding Spain's rating at BBB-, even a one notch downgrade would push S&P's rating into junk status", wrote Global Strategist Tim Davis, adding that concerns swept back as the German IFO came in higher than expected and pointing to widening Spanish spreads to Bunds.
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