LONDON (AP) — Credit ratings agency Standard & Poor’s is warning Spain that its weak economy could undermine its plan to rein in its budget deficit — and make a debt downgrade even more likely.
S&P said Friday that Spain’s deficit would likely remain above 5 percent of the country’s gross domestic product through to 2013. That means the debt burden could rise.
The ratings agency said it was keeping Spain’s AA+ bond rating but that any deterioration in its economy or finances could put “downward pressure” on its rating.
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