Standard & Poor's downgrades Spain's credit rating

The ratings agency Standard & Poor’s lowered the debt rating of Spain on Wednesday, its third downgrade of a European country in two days.

The downgrade came one day after the S.& P. cut the ratings of Greek and Portuguese debt, moves that set off a flight by investors away from global equities and into fixed income securities, particularly those in United States dollars.

The news Wednesday set off no such reaction, although an index of Spanish stocks fell about 3 percent. The S.&P. downgraded Spain’s debt one step, to AA, with a negative outlook.

With Greece inching closer to the brink of financial collapse, fear that the debt crisis will spread rattled global markets for a second day on Wednesday as investors awaited a signal from financial leaders gathering in Berlin.

Shares slumped 1 to 2 percent across much of Europe and Asia, and the euro briefly fell to its lowest level in about a year against the dollar, as investors worried that Portugal, Spain and even Ireland might not be able to borrow the billions of dollars they need to finance their government spending.

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