S&P cut Spain credit rating, Fitch downgrades Swiss bank

S&P cut Spains credit rating to double A-minus, with a negative outlook, following downgrades to the country’s top banks.S&P said Spain’s high unemployment, tighter financial conditions and “the likely economic slowdown in Spains main trading partners” prompted the downgrade. “The financial profile of the Spanish banking system will, in our opinion, weaken further,” S&P said.While the factors that impede Madrid’s recovery of domestic demand “are not unique to Spain,” the agency said that “they impact Spain with particular force given its high level of private sector leverage, much of which is funded externally.”Hours before that, Fitch lowered the Swiss Bank UBSs long-term issuer default rating to A from A-plus citing challenges in the economy and financial markets, as well as the impact of new regulations.Fitch said it is reviewing eight other European and American Banks, including Deutsche Bank, Bank of America as well as Morgan Stanley and Goldman Sachs for further possible downgrades.