<p>Both the International Monetary Fund and Spain's own Central Bank have cast doubt on the savings envisioned in Prime Minister Mariano Rajoy's 2013 budget, saying they are based on a too-rosy outlook for the economy.</p><br /><p>Rajoy's center-right People's Party has an absolute majority in parliament and so far has been able to pass spending cuts and economic reforms without any problem.</p><br /><p>However, street protests have increased in recent months as Spaniards revolt against huge public bailouts for the country's crippled banks, while social benefits are cut.</p><br /><p>S&P's two-notch downgrade from BBB-plus brings it in line with Moody's Investors Service's rating. Both firms have Spain just on the cusp of junk status, and Moody's has Spain also on review for a possible downgrade.</p><br /><p>Moody’s has promised to announce the results of a review of Spain’s finances for a possible downgrade this month.</p>
