Catalonia Cut to Junk as Spain Bails Out Bankia, Deficit Swells
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Catalonia’s credit rating was cut to junk by Standard & Poor’s after Spain’s most indebted region said it needs to tap a national rescue fund, even as the central government said its budget deficit swelled to 48.5 billion euros ($61 billion) in the year through July.
The cash-strapped national government in Madrid also moved late yesterday to inject capital into the Bankia group “immediately” after the nationalized lender posted a 4.45 billion-euro first-half loss.