Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

S&P Cuts Catalonia to Junk as Regions Tap National Rescue Fund

Don't Miss Out —
Follow us on:
S&P Cuts Catalonia to Junk as Regions Tap National Rescue Fund
Catalonia will seek 5 billion euros ($6.3 billion), almost a third of the 18 billion-euro fund announced in July by the government after being locked out of financial markets. Photographer: Stefano Buonamici/Bloomberg

Aug. 31 (Bloomberg) -- Catalonia’s credit rating was cut to junk by Standard & Poor’s after Spain’s most indebted region said it will need to tap a national rescue fund.

S&P lowered Catalonia, the largest of Spain’s 17 autonomous regions, by two grades to BB from BBB- with a negative outlook, the rating company said today in a statement.

The Spanish region of Murcia this week became the third to say it will need emergency loans, and Valencia signaled it needs funds to cover current and past overspending, adding fiscal pressure on Prime Minister Mariano Rajoy. Catalonia will seek 5 billion euros ($6.3 billion), almost a third of the 18 billion-euro fund announced in July by the government after being locked out of financial markets.

The country’s 17 semi-autonomous regions risk overwhelming a plan to tackle the euro area’s third-biggest budget deficit as Rajoy bails them out for a fourth time this year. The regions were responsible last year for most of Spain’s overspending and control more than a third of public spending, are increasingly being shunned by investors, mirroring the dynamic of the euro-region debt crisis.

To contact the reporter on this story: Scott Hamilton in London at shamilton8@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.