Moody's has taken the decision to lower the Iberian nation's rating by two levels from Aa2 to A1 with a negative outlook and attributed this call solely to the pressure it is under at present.
Earlier this week, Standard & Poor's (S&P's) came to the same conclusion as the country's financial future continues to be considered in danger.
In a statement following the announcement, Moody's explained that the "downside risks from a potential further escalation of the euro area crisis" weighed heavily on its decision.
This comes after Spanish financiers Santander and BBVA has their credit ratings cut by S&P's and Fitch.
Recently, finance ministers from the G20 called on banks and politicians to come up with a credible plan to deal with the debt by next week, but a deadlock still exists between such involved parties.
By Gary Cooper