Zero Hedge 
Dec 15, 2010
EURUSD kneejerk reaction on Moody’s announcement shows a downward acceleration of 9.8 m/s2:
Moody’s puts Spain’s Aa1 ratings on review for possible downgrade
Short-term ratings are affirmed at P-1; FROB’s Aa1 rating also placed on review for possible downgrade
London, 15 December 2010 — Moody’s Investors Service has today placed Spain’s Aa1 local and foreign currency government bond ratings on review for possible downgrade.
The main triggers for placing the rating on review for possible downgrade are:
(1) Spain’s vulnerability to funding stress given its high refinancing needs in 2011. This vulnerability has recently been amplified by fragile market confidence.
(2) A potential further increase in the public debt ratio should the cost of bank recapitalisation prove to be higher than expected so far, whether to meet higher-than-expected asset impairments or simply to retain the confidence of the wholesale markets.
(3) Increased concerns over the ability of the Spanish government to achieve the required sustainable and structural improvement in general government finances given the limits of central government control over the regional governments’ finances.