9July 2012, hours before a summit of eurozone finance ministers: comes the terrible headline: Spanish borrowing costs rise ahead of euro summit
Great. Should we worry or what? In June, Moody’s had cut Spain’s credit ratings to Baa3, just one notch above junk.
![Maxi Jazz](http://upload.wikimedia.org/wikipedia/commons/9/9d/Maxi_Jazz_G8_Konzert_auf_dem_weg_nach_Heiligendam.jpg)
The world cannot wait. You tell ’em.
Why is it important for a country to protect its credit ratings?
In theory, credit ratings should be directly linked to interest rates on public debt. Continue reading