Spain’s Credit Rating Cut by S&P on Weaker Growth Outlook

Spain’s credit rating was cut for the third time in three years by Standard & Poor’s as slowing growth and rising defaults threaten banks and undermine efforts to contain Europe’s sovereign-debt crisis.

The ranking was reduced by one level to AA-, S&P’s fourth-highest investment grade, with the outlook remaining negative, the rating company said in a statement late yesterday. Fitch Ratings downgraded Spain to the same level on Oct. 7, when the company also cut its rating on Italy.