S&P downgrades Spain

Standard & Poor's has downgraded Spain one notch from AA+ to AA, pointing to a slower than expected growth rate.

"Spain is likely to have an extended period of subdued economic growth, which weakens its budgetary position," S&P says. "We now project that real GDP growth will average 0.7% annually in 2010-2016, versus our previous expectations of above 1% annually over this period." The news follows S&P's downgrades of Greece and Portugal yesterday. Greece's rating was cut to junk status with its long-term debt rating downgraded to BBB+. Portugal's long-term government debt was cut by two notches to A-.