S&P downgrades Spain's debt rating on weak economy

By the Associated Press | October 13, 2011 | 8:00 PM EDT

NEW YORK (AP) — Standard & Poor's has downgraded its long-term debt rating on Spain, citing the country's weak growth prospects and risks facing its banks.

The rating agency said late Thursday that Spain's economy has shown signs of resilience this year. But S&P says the country is still burdened by high unemployment, tight credit, heavy private-sector debt loads and prospects that its main trading partners will also stumble.

It cut its long term rating to "AA-" from "AA." The outlook on the rating is "negative," which implies it could be lowered again at some point.

S&P, however, affirmed its short-term rating of "A-1+" on Spain.