Fitch reduced the rating of Spanish national debt

Standard & Poor’s isn’t the only big agency in retrieved the maximum credit rate to Spain. Fitch also reduced the credit rating by a step, to AA+, with a ’steady’ perspective, so isn’t thinking in reduce it again in the future.

This decision was featured one hour after the closing of European markets, but affected Wall Street an the Euro as well. The risk factor in Spain continued to grow and reached 160 basic points. The treasure of Spain highlighted that this rating is still being high.

Fitch returned to trouble Spanish market, specially when looking to the beginning of the next week.

Lower growth

“the reduction of Fitch reflects the valuation on the adjustment process to a lower deficit, and the valuation of private industry, that will reduce the growth of Spanish economy in the mid-run”.

Fitch launched a message of tranquility, when stating that the profile of national debt in Spain continues being very strong, hold by a diversified economy and a “solid” financial sector.

Labor reform and savings banks.

But Fitch seems worried in the mid-run “although the national debt and the associated interests rates remain in AAA, Fitch anticipates that the process of economic adjustment will be longer and more difficult than for other economies with the highest credit rating, for that reason, the agency lowered the credit rating of Spain to AA+”.

The report of Fitch, points repeatedly, the “process of economic adjustment”. The company added other issue spots that will also participate in that process. In the middle of the restructuring of savings banks and the debate on the labor reform will difficult the way to adjustment, specially the trouble derived from the real estate boom

More debt although the cuts

New measures approved by the government, that include reductions of civil servant’s salaries and the freeze of pensions, will not prevent the levels of national debt to increase.

According Fitch , “although the big commitment to reduce deficit- as showed by the measures of government to reduce salaries of civil servants by 5%, the national debt could reach 78% of GDP in 2013, in contrast of the 40% before the crisis”.

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