A man dressed as 'Superpublica', an invented superhero who defends public education, gestures as students protest against spending cuts in public education in Oviedo, northern Spain, April 25 2012. Placard on left reads 'For Sale. Public Education. Contact Wert'.
The Standard & Poors agency has cut Spain's credit rating Thursday two notches, saying the outlook is negative.
In reducing the country's sovereign debt rating from "A" to "BBB+," S&P cited what is calls the risk that Spain's debt could expand while the economy shrinks.
The financial rating agency predicted that the Spanish economy will contract 1.5% this year after previously forecasting a slight growth.
S&P says falling personal incomes, less investment by businesses, and cuts in government spending to balance the national budget are dragging down the Spanish economy.