S&P cuts Spain's Catalonia rating to BB/B

BOSTON (MarketWatch)
Ratings agency Standard & Poor's lowered its credit rating of Spain's Catalonia region Friday from BBB-/A-3 to BB/B, with a negative outlook
The agency also lowered its issue rating on Catalonia's debt to BB from BBB-, adding it now expects a recovery rate of 30% to 50% in the event of a payment default
"The downgrade of Catalonia follows the nascent tensions between the region and the central government, and the potential negative impact we believe these tensions may have on Catalonia's ability to secure external funding," S&P said in a statement