Spain receives debt warning before EU summit

[Joanne98]

Source: Reuters

(Reuters) - Ratings agency Moody's warned Spain on Wednesday that its debt could be downgraded and Portugal took steps to revive its economy amid concerns about euro zone debt contagion on the eve of a European Union summit.

Moody's said it was worried about Spain's high debt funding needs, its heavily indebted banks and its regional finances, but it did not expect Madrid would have to follow Greece and Ireland in seeking an EU bailout.

The Portuguese government announced moves to cut red tape and boost growth, and said it would soon adopt quarterly fiscal targets, part of a broad effort to convince EU officials and financial markets it does not need a bailout.

Spain and Portugal have come under intense pressure in bond markets, raising concerns they could be driven into seeking an EU/IMF rescue when they hit funding crunches next year.



Read more: http://www.reuters.com/article/idUSLDE6AO0HG20101215

[liberation]

1. Shouldn't be Moody's the ones getting the warnings...

... given they are/were at the center of this economic clusterfuck with their AAA ratings of worthless debt packages they were shipping overseas?

[Joanne98]

2. Yep!