[News Editor]

Ratings agency Standard & Poor's revised its outlook on Spain to negative on Wednesday and warned that the country faced a risk of a debt downgrade in two years if the government did not take tough action. "In our opinion, reducing Spain's sizable fiscal and economic imbalances requires strong policy actions, which have not yet materialized," Standard & Poor's said in a statement.
It added the country faced a deeper deterioration in public finances and a longer period of economic weakness than it had expected when it lowered Spain's sovereign rating in January to "AA+" from "AAA".
Spanish bank shares fell after the news, which added to nerves in world markets already unsettled by rising fears over the ability of fellow euro zone member Greece to pay its debts.
Banco Santander fell 2.2 percent and BBVA lost 2.5 percent, while the DJ STOXX European banking index was down 1 percent.
Spain's share benchmark extended losses, down 1.1 percent, after the S&P announcement, while Benchmark Bund futures rose 20 basis points to a session high of 123.58 .
Spain's economy ministry had no immediate comment on the rating agency's move.