Moody's downgrades Spain's credit rating

The outlook for the troubled Spanish economy took another turn for the worse on Thursday.

Spain has lost its last triple-A credit rating with the major rating agencies, following a downgrade from Moody's.

The agency downgraded Spanish debt by one level to Aa1, following similar moves by Fitch and Standard & Poor's earlier this year.

This will make it more expensive for Spain to borrow on the international markets as it tries to cut its deficit which stands at some 9.3% of GDP.

Sarah Rainsford reports from Madrid.