S&P assigns 'BBB-' to Spain with a negative outlook 

(MENAFN) Standard & Poor's (S&P) lowered Spain's sovereign credit rating to 'BBB-', with a negative outlook, as the Spanish government struggles with limited options to stem the deepening economic recession and fiscal crisis, Reuters reported.

The negative outlook given to Spain reflects the credit ratings agency's view that there are significant risks to economic growth and fiscal performance, in addition to a lack of clear direction in euro zone policies.

S&P's downgrade to near 'junk' status follows a similar move from Moody's Investors Service's Baa3 rating. Moody's has Spain on review for a possible downgrade.

Fitch Ratings has a BBB rating on Spain, one notch higher, but also with a negative outlook.

The country is chocking with recession since earlier this year and a stubbornly high joblessness at nearly 25 percent with a return to job creation still two years away.

Also dwindling tax revenue and rising costs of unemployment benefits are crimping the government's efforts to achieve a 2012 deficit reduction target of 6.3 percent of gross domestic target agreed with the European Union.