Standard & Poor's lowered Spain by two steps at once

The international rating agency Standard & Poor's lowered the long -term sovereign credit rating of Spain by two steps - to "BBB+" C "A", the forecast is negative, the agency’s release said. At the same time, the short-term sovereign credit rating is reduced to the "A-2" C "A-1".

One of the factors of the rating action was the agency’s concerns that the country's government would be forced to provide assistance to the banking sector, Prime reports.

"We believe that the risks of deteriorating budget indicators and a decrease in flexibility (financial component of the country), as well as a debt load, especially in the light of increased volumes of conditional debt, can be reflected in the balance of the government," the S&P release says.

The agency notes that it will be more difficult for the country to serve the public debt and fulfill the program for reducing budget expenditures in connection with the recession that has begun.

S&P worsened the forecast for the dynamics of the development of the Economics of Spain. Now the agency expects a reduction in GDP in real terms by 1.5% in 2012 and 0.5% in 2013. Previously, S&D predicted economic growth - at 0.3% in 2012 and 1% in 2013. The previous decrease in the Spanish sovereign rating S&P was carried out in mid -January.

On April 23, the Central Bank of Spain said that in the country, the development of the economy of which is aggravated by serious problems of the financial sector and a high level of unemployment, a technical recession began.