Moody's international rating agency has placed Spain's Aa2 long-term sovereign rating on a CreditWatch list, the agency said on Friday.
The decision was due to the high sensitivity of the Spanish financial sector to market stresses, which increases expenses on debt servicing for both government and private banks.
Moody's said it appreciated the Spanish government's measures to solve its short-term financial problems but stressed that the authorities might face obstacles in the long-term owing to low economic growth.
The Spanish government's current targets include budget deficit reduction to 4.8 percent of GDP, higher exports and fighting growing unemployment.
The agency's decision did not cover Spain's Prime-1 short-term sovereign rating. Moody's also placed the debt and deposit ratings of five Spanish banks, including Banco Santander, BBVA, CaixaBank, La Caixa and Confederacion Espanola de Cajas de Ahorros, on CreditWatch.
Moody's last change of rating for Spain took place this March when the agency downgraded the rating of state bonds to Aa2 with a Negative outlook.
