Spain downgraded to near junk despite cuts

Standard & Poor's ratings agency on Wednesday (10 October) downgraded Spain to almost "junk" despite its fresh set of austerity measures, disproving the EU commission's view that budget cuts are "restoring credibility on the markets."

"The downgrade reflects our view of mounting risk to Spain's public finances, due to rising economic and political pressures," the ratings agency said in its note.

"The deepening economic recession is limiting the Spanish government's policy options...