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01 in the United States could control and that's Spain on the brink.
We could be just hours away from Spain throwing in the bailout towel and finally asking for a rescue package.
Joining me now -- Fox Business exclusive live from London David Riley Fitch's head of sovereign ratings and I and I guess David.
You've got to tell us what happens next.
What happens to Spain's rating which you -- to triple B minus.
Which is not great obviously if Spain says we're ready for the bail -- and the European Central Bank says OK let's face it now.
Well we actually think you'd be a positive development aid Spain still still doing over weather's going to request.
Help on -- and it needs to request that help if it's going to them unlock the firepower of the European central bank and intentions of -- purchases.
Implied by the ECB say if we've said this before if Spain and it was too awful that support.
That would intrigue downgraded speculative grade point by Fitch.
If it helps to stabilize the financing situation for Spain is a -- And -- groups -- that flight of capital that we've been seeing in the case of of Spain.
Then that does give the government some time -- restructure the banking sector.
Which he needs to do and then deliver the reforms to to -- -- -- the economy -- a guy so it for -- it would actually.
And relieve some of the near term pressure.
On the on on Spain's rating if that she -- to the -- simple.
So you would not see it as a negative if Spain finally says were ready we can't take it anymore we need that -- -- What would you see as a negative if you started to see the banks falter I know some of the Spanish banks just passed.
But stress tests but I don't know how much value you put -- those stress tests you tell me.
Well I'm and it's just has identified that it is a shame peak capital shall -- in Spanish banks and but the numbers -- came up with.
-- in this in their worst case scenario was was basically in lime and up ice -- So do we we are somewhat more negative and -- stress test but I think what we've taken some assurance from within the market has is well.
Is that it's within the sort of hundred billion year and the life remember Spain -- -- has.
Agreed a hundred billion loan from its and they -- -- us to help recapitalize.
-- its its banks so you.
Given what would potentially.
For estimating down -- -- -- -- -- -- is our concern is that -- over the outlook for the economy as a whole thing needs Citi.
Right bringing in -- support -- capital from flowing out of the country that would help stabilize was a necessary condition for trying to get it coming back and is the stopping unemployment from from continuing to to to rise.
That's a tool I was asked to be said but we're willing to give some time.
Harmful for spying to city commission demonstrated to -- around.
Well -- uninterested in the UK as well but that even though they're not a eurozone nations that you just said -- Spain stopped -- capital flight for the country.
We're seeing a lot of capital flight from France.
It's France next for downgrade according looking at that is.
Perhaps vulnerable right now -- it.
Well we've that we do have -- as you know on on the negative outlook.
There's been -- -- -- -- has been coming out of France despite prison homelands.
So the pre election -- he has in fact committed to and see reducing the budget deficit to.
Chief -- next year and actually to -- signing into all the fiscal compound which would actually commit.
Found some balancing its budget -- -- -- medium term.
The big concern in terms of -- at this point in time is that doing that -- -- -- that budget gap by raising taxes.
Kind of stick to address issues about competitiveness about getting more people into employment in France.
In the gonna have to reduce taxes and jobs are gonna have to reduce -- taxes which amongst the highest.
I'm in the well -- -- risk if put to see how they can do that without cutting public spending and and that's something which have been got reluctant to decent.
But but but -- -- in this you know they had to have some time to some turn that around I think.
Lowering taxes improves the picture is what I'm hearing you say at least for France David thank you for joining us David Riley.
Fitch's head of sovereign ratings saying that the triple B minus credit rating for Spain will remain the same even.
If they ask for a bailout plan we are sixteen minutes from the closing bell what do you want stock at Wal-Mart Wal-Mart and a lot of you do have a target.
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