downgraded Spain’s debt Friday due to Spain’s austerity measures which are seen as a threat to the country’s economic growth

Ratings agency Fitch downgraded Spain’s debt Friday due to Spain’s austerity measures which are seen as a threat to the country’s economic growth.
“The downgrade reflects Fitch’s assessment that the process of adjustment to a lower level of private sector and external indebtedness will materially reduce the rate of growth of the Spanish economy over the medium-term,” said Brian Coulton, Fitch’s Head of EMEA Sovereign Ratings.
Private debt includes household debt, company debt as well as bank debts.
The ratings agency slashed Spain’s triple A rating to AA+
Fitch warned in a statement that “the inflexibility of the labour market and the restructuring of regional and local savings banks will … hinder the pace of adjustment, particularly in the aftermath of the real estate boom.