Spain has had its credit outlook cut to negative from stable by the ratings agency Standard & Poor's. The agency said Spain faced a deeper deterioration in public finances and a longer period of economic weakness than it had previously expected. The news rattled European markets which were already unsettled by Tuesday's decision by another ratings agency, Fitch to downgrade Greece. Stock markets in London, Paris and Frankfurt all closed lower. In a statement, the agency said reducing Spain's sizable fiscal and economic imbalances requires strong policy actions which have not yet materialised. Spain is still in recession and the government has launched a massive public works programme to try to keep unemployment under 20 per cent.