Skip to content
Subscriber Only

Spanish Deficit Haunts Rajoy Defying Junk Status

Spanish Prime Minister Mariano Rajoy’s results from his first year in office are about to get a close inspection by credit rating companies and investors.

Deficit data due this month will show how far the government reduced its budget shortfall in 2012, a year when Spain came close to needing a bailout. While 10-year borrowing costs are down more than 200 basis points from their July peak, two ratings companies grade Spanish bonds one level above junk and another cut may make them too risky for some investors.