Ratings agency FItch on Thursday downgraded Spain's sovereign debt rating from A to BBB. The ratings agency simultaneously assigned a negative outlook on Spain's economic future, signaling potential future cuts. Fitch noted that Spain will need between 60-100 billion euros in order to recapitalize the country's banking center, up from a previously estimated 30 billion euros.
According to Fitch:
The dramatic erosion of Spain's sovereign credit profile and ratings over the last year in part reflects policy missteps at the European level that in Fitch's opinion have aggravated the economic and financial challenges facing Spain as it seeks to rebalance and restructure the economy.