Spain kept its investment grade credit rating from Moodyâ€™s Investors Service, which cited a reduction in the risk of losing market access because of the European Central Bankâ€™s willingness to buy the nationâ€™s debt.
Moodyâ€™s assigned a negative outlook on the Baa3 sovereign debt, one step above junk, as it concluded the review for a possible further downgrade of Spainâ€™s rating that it had initiated in June, the New York-based company said in a statement yesterday.
Spain avoided joining euro-region peers Cyprus, Portugal, Ireland and Greece as being rated below investment grade. Standard & Poorâ€™s has a negative outlook on its BBB- rating, also one step above junk, and Fitch Ratings has Spain at BBB, two levels higher than junk.
The willingness of the ECB to purchase Spainâ€™s government bonds in the secondary market â€œis an important stepâ€ for Spain to maintain access to credit markets, Kathrin Muehlbronner, a Moodyâ€™s analyst in London, said in a telephone interview.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.