Spain Likely to Have Credit Rating Cut and American Troubles Mount

Nothing surprising and the Dems will be using this an excuse to raise taxes and speak of "investments". As for Spain I guess that green jobs thing just didn't pan out.

Spain will probably lose its Aaa credit rating after the country was put under review for possible downgrade in June, and the U.S. needs a “clear plan” to tackle its deficit, Moody’s Investors Service said.

“Spain is very highly rated and I can’t say where that rating will end up, but it’s likely to go down a bit,” Steven A. Hess, senior credit officer at Moody’s, said in an interview in Sydney yesterday. In the U.S., slower growth may hinder government efforts to address the budget shortfall, he said.The Spanish government is trying to cut the third-largest budget deficit in the euro region while returning to growth after an almost two-year recession. Spain’s classification may be lowered as much as two grades, Moody’s analysts said June 30, citing “deteriorating” economic prospects and the challenges the government faces to achieve its fiscal targets.

“We’re watching the government’s measures that they are implementing and we’ll probably try to put that rating at the level we think it should belong for some time to come,” Hess said. “We don’t see it moving down as many notches as Greece did.”

Oh well, once the dominoes start to fall we can only hope the damage is minimal.