SPAIN’S credit rating has slumped following last week’s general strike.

New York credit agency Moody’s has reduced its position from AAA to the next level of Aa1.

It means the country will now have to pay more to borrow money on the international markets.

The agency cited weak economic growth, a deterioration of financial strength and higher borrowing needs as the reasons for the downgrade.

And although the decision was expected it has been greeted with disappointment by Elena Salgado, the finance minister, who had hoped Spain would be left in the top tier.

But in her budget last week she said the government would not waver in its reform plans.

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