by Calculated Risk on 4/28/2010 11:32:00 AM

S&P downgraded Spain to AA with a negative outlook based on a forecast for an extended period of sluggish growth.

From Bloomberg: S&P Downgrades Spain to ’AA’; Outlook Negative

Update: Quote from MarketWatch:

"We now believe that the Spanish economy's shift away from credit-fuelled economic growth is likely to result in a more protracted period of sluggish activity than we previously assumed," said Marko Mrsnik, an S&P credit analyst. "We now project that real GDP growth will average 0.7% annually in 2010-2016, versus our previous expectations of above 1% annually over this period,"

Seven years of pain ... in Spain.