Moody's Investors Service on Tuesday cut Spain's sovereign ratings, where Spain's credit rating was cut for the third time since June of last year as Europe's debt crisis threatens to engulf the nation.

Spanish's government bonds reduced its ranking by two levels to A1 from Aa2 with the outlook remaining negative.

Moreover, Standard & Poor's downgraded Spain on Oct. 14 to its fourth-highest investment grade, and Fitch Ratings cut it to the same level on Oct. 7, the day it also downgraded Italy.