The country’s debt rating was dropped to AA- from AA on concerns that the country’s high unemployment and excessive debt could dampen any economic growth. The downgrade brings Standard & Poor’s in line with Fitch Ratings, though the Spanish government took issue with the rating, according to Reuters.
“S&P underestimates the scope of the unprecedented structural reforms undertaken, which will obviously take time to bear fruit,” Spain’s Treasury said in a statement to investors on Friday.
The ratings agency did note that the country’s debt-to-GDP ratio is not nearly as dire as the other nations currently suffering major concerns, such as Greece and Italy.
Though the euro has seen sizable gains in recent days, all of Europe is waiting on news from the leaders of the region’s two biggest economies, Germany and France, regarding a potential solution to the Greek debt crisis. Greece is expected to run out of funds sometime this month.