Moody’s downgrades Spain

To A1 with a negative outlook from Aa2. EUR sliding.

A cut was expected before the end of the month but this is one notch lower than anticipated. The A1 rating corresponds with A+ from S&P/Fitch but both are a notch higher at AA- (with a negative outlook).

The playbook hasn’t been to sell EUR aggressively after such downgrades but it should weight.