A second agency has downgraded Spain’s credit rating, citing the country’s poor growth prospects.

Fitch cut Spain’s rating from the maximum AAA to AA+.

Standard & Poor’s took the same step a month ago but Fitch’s move is a fresh blow to the government which wants to ease market fears about its economy.

Also on Friday, six regional Spanish savings banks said they were negotiating alliances to avoid insolvency.

Many of the 45 savings banks operating in Spain have struggled after investing heavily in the property sector, causing a boom in construction before its collapse following the financial crisis.