Moody's downgrades 8 Spanish regions

 

Moody's credit ratings agency has downgraded the ratings for a number of Spanish regions.

The measure is part of a review of the ratings of all European countries and financial institutions in the face of rising risks to the economy and escalating regional and national levels of debt.

A credit rating for a country or regional government indicates the levels of risk represneted to investors of a country and is used by institutions when looking to invest abroad. It takes political risk into account.

Last month the agency downgraded the Autonomous Community of Valencia - the most indebted of the Spanish regions - by 3 points, from Ba1 to Ba3.

The following regions have been reviewed :

Andalucía: from A2 to A3 being kept in revisión.

Basque Country: from Aa3 to A2 being kept in revisión to negative outlook

Castilla-León: from A2 to A3 being kept in revisión to negative outlook

Catalonia: from Baa2 to Baa3 being kept in revisión.

Extremadura: from A1 to A3 being kept in revisión.

Galicia: from A1 to A3 being kept in revisión to negative outlook.

Madrid: from A1 ti A3 being kept in revisión to negative outlook.

Murcia: from Baa1 to Baa2 being kept in revisión.

By comparison, the Countries of Mexico and Lithuania carry ratings of Baa1; Khazakstan and Bulgaria carry ratings of Baa2, and Colombia and Costa Rica carry ratings of Baa3.