Fitch downgraded Spain’s long-term foreign and local currency ratings by one notch to AA+ from triple-A. According to the company:
“The downgrade reflects Fitch’s assessment that the process of adjustment to a lower level of private sector and external indebtedness will materially reduce the rate of growth of the Spanish economy over the medium term,“ Brian Coulton of Fitch was quoted as saying in a statement.
Spain responded with . . . you guessed it! Plans to toughen controls of equity short selling.