Date: Wednesday 30 May 2012
Egan Jones, an independent NRSRO (Nationally Recognized Statistical Rating Organization) in the US, has become the latest rating agency to downgrade Spain.
Egan Jones slashed Spain's sovereign rating by two notches from BB- to B, a speculative-grade rating, and maintained a negative outlook.
This comes just one day after Japanese agency Ratings & Investment Information (R&I) cut its own rating from AA to A.
In regards to Egan Jones, the firm argued that Spain's position has weakened due to the increased public deficit of 8.9%, unemployment above 24%, potential bank loan losses of €260bn as estimated by the Institute of International Finance, and a possible run on deposits.
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