Moody's has cut Spains soveriegn credit rating moving it from Aa2 to A1. Moody's is the last of the worlds four largest credit investors to act in Spain. The lowered credit nmber means foreign confidence in Spain's rapid economic recovery policies. The lowered rating has put a negative outlook on Spain's recovery and may put an e to its ambitious recovery plans. Spanish growth shows little promise as well, Spain's economy has only grown by 1.3% this year ad nxt years projected growth is much more bleak. Spain's inability to pay is debt along with the amont of debt it is creating also mixed with the small growth percentages mean that Spain's economy is in trouble. While concern is rising a AA rating is not something to lose sleep over it only means that Spain will have to work twice as hard to secure foreign investment. The rpoblem in the spending seems tob the lack of control of spending within Spain's autonomous communities. This causes great concern for investors.Spain's intial response was a boost in state lottery and a tax plan for airports. The plan was cancelled hoever after a ajor protest by the opposition party. Hope lies in spain's PP party who have told foreign bankers that they plan to pass a constitutional movement toreform spanish spending and are working with the current government to get a the beginnings of the bill underway.
http://edition.cnn.com/2011/10/18/business/spain-moodys-rating/index.html?hpt=ieu_c2
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