S&P downgrades Spain’s credit rating

S&P downgrades Spain’s credit rating

Standard & Poor's (S&P) has cut Spain's long-term credit rating by one notch, from AA to AA-, The rating has been revised in wake of weak growth and high levels of private sector debt in Spain. The ratings agency added that the country's high unemployment would remain a drag on the economy.

Fitch agency also cut Spain's rating, a process that can raise a country's borrowing costs. S&P's move comes as G20 finance ministers are due to meet today to discuss the euro-zone crisis.