Spain’s credit rating may be cut from Aa1, Moody’s Investors Service said, as the government prepares its final bond sale of the year tomorrow.
Spain has to raise euro 170 billion ($226 billion) next year, while refinancing needs for its regions total euro 30 billion and for banks around euro 90 billion, Moody’s estimates.
“Spain’s substantial funding requirements, not only for the sovereign but also for the regional governments and the banks, make the country susceptible to further episodes of funding stress,” Kathrin Muehlbronner, an analyst at Moody’s, said in a report today.
