Ratings agency DBRS says outlook for Spain remains negative
MADRID, Sept 19
MADRID, Sept 19 (Reuters) - Credit ratings agency DBRS, one of the four firms whose ratings the European Central Bank uses to set collateral for banks' funding, said on Thursday Spain's outlook remained negative.
"We rate Spain at A (low), the same as Italy and Ireland, and the trend is negative," DBRS's top sovereign analyst Fergus McCormick said at a conference in Madrid.
Any shock that destabilises interest rates, sets back economic recovery or leads to a significant deterioration in the fiscal position could prompt a downgrade, he said.
If DBRS were to downgrade Spain, the ECB would be pressured to demand the country's banks put up more collateral - in the form of Spanish sovereign bonds - in exchange for funds. DBRS's sovereign rating for Spain is higher than the other three credit rating agencies.
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