You have to wonder, if credit agencies like Moody’s didn’t seem to want to make things a lot worse for Spain all the time by their constant ratings lowerings, things in the Spain might be a lot better. Case in point, Moody’s latest reducing of scores for the regional governments of Cataluña and Murcia — reductions that are so bad, Cataluña and Murcia are now at junk bond status.
Cataluña and Murcia regional governments were joined by Andalucía and Extremadura, who had their scored reduced yesterday to just above junk bond status. Valencia and Castilla-La Mancha are already at junk bond level.
As for Cataluña and Murcia’s junk bond status, Moody’s said one of the big reasons they were downgraded was, even though the regional governments had provided a reduction in spending on education and health in 2011, these cuts had not occurred to the extent that were budgeted.