Moody’s says can’t rule out Spain bailout

MADRID (BestGrowthStock) – Ratings agency Moody’s said on Wednesday it does not rule out that Spain will need to apply for aid from the European Financial Stability Facility (EFSF), but it was not its base case scenario.

“We don’t rule it out entirely but this is not the base case,” Moody’s lead analyst on Spain Kathrin Muehlbronner told Reuters in telephone interview after the agency said it was reviewing a possible downgrade of the country’s Aa1 rating.

“We think the government is on track to achieve its fiscal targets and are relatively confident it will bring the deficit down to 6 percent next year,” she said.

However, Moody’s believed the Socialist government would need to implement further economic measures because the agency’s growth assumptions were lower than government forecasts, she said.

(Reporting by Paul Day; Editing by Elisabeth O’Leary)

Moody’s says can’t rule out Spain bailout