The Spanish City of Barcelona (Barcelona) and City of Madrid (Madrid) were downgraded to 'BBB-' from 'BBB+', with negative outlook.
Meanwhile, S&P decided to lower the rating of Andalusia to 'BBB-' from 'BBB', Aragon to 'BBB-' from 'BBB', Canary Islands to 'BBB-' from 'BBB+', Galicia to 'BBB-' from 'BBB+', and Madrid to 'BBB-' from 'BBB+'. Meanwhile the agency affirmed Balearic Islands rating at 'BBB-'.
In all cases the outlook remains negative reflecting the negative outlook on Spain, "since we do not rate Spain's local governments above the sovereign, according to our criteria", says S&P.






