Inv Perp: Spain will pull through despite Moody's warning

Invesco Perpetual remains positive on the prospects for the Spanish economy despite Moody's hinting it may downgrade the nation's credit rating this morning.

Luke Stellini, product director at the group, said Spain's fundamentals are unchanged following the Greek rescue package and the warning from Moody's, and the country is likely to "navigate its way to sustainability". Moody's has placed Spain's Aa2 government bond rating on review for a potential downgrade over concerns the new bailout package for Greece will increase risks for bondholders. Commenting on the rating, Stellini said: "This is clearly not a positive development in terms of sentiment. Having said that, Spanish bank share prices are not underperforming the broader European ...