Spain's credit rating downgraded

Moody’s Investors Services downgraded Spain’s credit rating by one notch to “Aa1” from “Aaa” as the nation’s outlook “Weakened.”

Spain's Prime Minister Jose Luis Zapatero is preparing to pass the biggest ascetic budget plan in nearly three decades while also trying to convince lenders and investors that Spain’s deficit will narrow and the economy will return to growth following eight quarters of deep recession.

Spain was downgraded earlier this year by both Fitch Rating and Standard & Poor’s.