Standard&Poor's is lowering its long-term sovereign credit rating on the Kingdom of Spain by two notches to 'A' from 'AA-', and its short-term rating to 'A-1' from 'A-1+'. The downgrade reflects our opinion of the impact of deepening political, financial, and monetary problems within the European Economic and Monetary Union (eurozone), with which Spain is closely integrated. The downgrade also reflects our view of external financing risks in the private sector, which we believe could constrain growth and hamper the government's efforts to narrow the fiscal deficit. The outlook on the long-term rating is negative. On Jan. 13, 2012, Standard&Poor's Ratings Services lowered its long- and short-term sovereign credit ratings on the Kingdom of Spain to
