Long-Term Rating On Spain Lowered To 'AA-' On Economic Growth And Banking Sector Risks; Outlook Negative Oct 11

Standard & Poors, October 2011

Abstract
Despite signs of resilience in economic performance during 2011, we see heightened risks to Spain's growth prospects due to high unemployment, tighter financial conditions, the still high level of private sector debt, and the likely economic slowdown in Spain's main trading partners. The financial profile of the Spanish banking system will, in our opinion, weaken further, with the stock of problematic assets rising further, as highlighted by the recent revision in our Banking Industry Country Risk Assessment on Spain to Group 4 from Group 3. As a consequence, we are lowering our long-term sovereign credit ratings on Spain to 'AA-' from 'AA'. The outlook on the long-term rating is negative. LONDON (Standard & Poor's) Oct. 13, 2011--Standard & Poor's Ratings...

Companies mentioned in this report are: Spain (Kingdom of),Sociedad Estatal de Participaciones Industriales (SEPI),Instituto de Credito Oficial,Corporacion de Reservas Estrategicas de Productos Petroliferos,Fondo de Reestructuracion Ordenada Bancaria (FROB),Fondo de Amortizacion del Deficit Electrico
Action: Downgraded

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

Spain (Kingdom of),Sociedad Estatal de Participaciones Industriales (SEPI),Instituto de Credito Oficial,Corporacion de Reservas Estrategicas de Productos Petroliferos,Fondo de Reestructuracion Ordenada Bancaria (FROB),Fondo de Amortizacion del Deficit Electrico

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