FITCH downgrades Spain to BBB from A; Outlook negative

(related: BUNDS EUR/CHF EUR/GBP EUR JPY EUR/USD EWP FEU FEZ)

Fitch has downgraded Spain's Long-term rating.

Продолжение: Fitch issues forecast on Spain banking needs; sees EUR50B-60B capital required.


А это из breafing.com:

Event Trader: Fitch downgrades Spain three notches making it the low person on the street; S&P cut Spain to A-1 bacl on April 26; Moody's downgraded Spain to A1 on Feb 13

— The likely fiscal cost of restructuring and recapitalising the Spanish banking sector is now estimated by Fitch to be around EUR60bn (6% of GDP) and as high as EUR100bn (9% of GDP) in a more severe stress scenario compared to Fitch's previous baseline estimate of around EUR30bn (3% of GDP)… Spain is forecast to remain in recession through the remainder of this year and 2013 compared to Fitch's previous expectation that the economy would benefit from a mild recovery in 2013… Spain's investment grade status remains supported by a relatively high value-added and diverse economy as well as political and social stability despite very high unemployment.

— The Outlook on Spain's sovereign ratings remains Negative, indicating a heightened risk of further downgrades Spain's sovereign ratings at 'BBB' are robust to some further deterioration in the economic and fiscal outlook and somewhat greater than expected fiscal cost of bank restructuring, as well as to receipt of temporary external financial support for bank recapitalisation. However, Spain's high level of foreign indebtedness and prolonged economic weakness as it deleverages and rebalances does render it vulnerable to negative economic and financial shocks. A loss of market access for budgetary funding and consequent reliance on external policy-conditional financial support would prompt a further review of Spain's sovereign ratings.