Credit Rating of Spain

[pioneer]

A second agency has downgraded Spain's credit rating, citing the country's poor growth prospects.

Fitch cut Spain's rating from the maximum AAA to AA+.

Standard & Poor's took the same step a month ago but Fitch's move is a fresh blow to the government which wants to ease market fears about its economy.

Also on Friday, six regional Spanish savings banks said they were negotiating alliances to avoid insolvency.

Many of the 45 savings banks operating in Spain have struggled after investing heavily in the property sector, causing a boom in construction before its collapse following the financial crisis.

But the market's collapse has now left lenders with debts worth 445bn euros ($550bn; £380bn), according to Goldman Sachs.

One of them, Cajasur, was taken over by Spanish authorities earlier this month after talks to merge it with a profitable bank ended. - bbc