Moody's warned Spain on Wednesday that it might be in for a ratings downgrade, bringing that nation unwelcome attention before the start of a summit meeting of European Union (EU) leaders on Thursday.
According to a Reuters report, despite its concern over about 60 billion euros ($80.05 billion) in debt that Madrid will need to refinance early in 2011, the agency sees no expectations that the country will need a bailout. Still, Wednesday saw a rise in the yields on Spain's 10-year bonds, as well as an increase in the cost of insuring its debt.
Elena Salgado, Spain's economy minister, said of the increases that market movements were exaggerated due to thin volumes at the end of the year, but added that enlarging the rescue fund set up to handle such concerns might also make sense.
