Fitch slashes Spain credit rating by three notches

A company named Fitch ratings has chopped and channeled Spain's credit rating down to BBB from A.

That's a three notch drop !!

Big trouble for Spain and the E.U.

Spain is Europe's 4th largest economy !!!!

Fitch Ratings slashed Spain's sovereign credit rating by three notches Thursday, citing ballooning estimates of the cost of a banking crisis, mushrooming debt and a deepening recession.

The long-term rating was chopped to BBB from A and left with a negative outlook, said Fitch, swooping as expectations mounted that the Europe Union would have to throw a lifeline to Spanish banks.

"The likely cost of restructuring and recapitalising the Spanish banking sector is now estimated by Fitch to be around 60 billion euros ($75 billion) and as high as 100 billion euros in a more severe stress scenario," it said.

Fitch slashes Spain credit rating by three notches


Is this the fault of the average citizen ?

or is it the big time hungry muney mungers at work ?

Looks like the money changers take prisoners fast, and never want to let go !!

Fitch Ratings website


Related article from The Guardian - U.K.
Spain's credit rating downgraded by Fitch as international bailout looms

reply to post by xuenchen


Looks like Spain will be the next one out of the Euro. With such a high unemployment rate its clear that they will continue to go downhill. A bailout for them would have to be huge considering the size of there economy.

I've heard the estimates to be more like 140B Euros, with only 5B left in their bailout fund. Ruh-roh!

I don't know if Spain will actually exit the Euro, I think there's too much at stake there for them(TPTB) to let it go so easily. So much sovereign wealth still to be stolen! They will let Greece walk and crumble to make the point that Spain and all of the others don't want to tread the same path, and watch them come running with gold in hand to ask for another bailout. They will make the Greek situation as dire as possible to scare the piss out of everyone, but this is just Spain's warning. Spain has the fourth largest sovereign gold reserve in the world, they're in a much better position to bargain.

Be interesting to see tonights markets..
one thing that is standing out this month is GOLD!
With all the bad news this past few weeks, the DOJ dropping etc etc, gold has been going DOWNWARD.
even with todays Spain cut, gold has dropped 1.2x%
... i woulda have thought with global turmoil on the markets people would be buying gold as safe haven.
To me it shows gold is radically inflated atm, even bad news wont make it move up any more.


'they' really screwed the markets up bigtime!