Updated on
Summary The yield on the country's 10-year bond spiked higher Thursday
The dilemma facing the Spanish government has got more acute following a downgrade of the cash-strapped countrys credit rating.Late Wednesday, Standard & Poors cut its rating on Spains debt by two notches to BBB-, leaving the country on the cusp of junk status. Thats important because it potentially makes it more expensive for the Spanish government to service its debts.The agency argued that the governments hesitation in requesting help was potentially raising the risks to Spains rating.Though S&Ps warning may nudge the Spanish government to make a bailout request sooner than later, rival agency Moodys has indicated it may cut its rating on Spain in the event of a bailout request.The yield on the countrys 10-year bond spiked higher Thursday, an indication of mounting investor unease.
