The series of debt havoc in Europe continues to dominate this week, where Tuesday's downgraded credit rating for Greece and Portugal was yesterday followed with a similar step on Spain.

Standard & Poor's cut the credit rating on Spanish debt yesterday to AA from AA- as the Greek debt contagion spread as borrowing costs across Europe continue to surge. In the wake of the move, Spanish Deputy Finance Minister Jose Manuel Campa said Spain will have no problem in financial 16.2 billion euro bond redemption in July and does not need to ask aid from the European Union the way Greece needed.

Bloomberg cited Campa in a phone interview yesterday saying Spain was surprised by S&P's move that was based on excessive pessimism.

Spanish debt rose to the highest in over a year and the cost of insuring their debt against default surged to the highest on record as Greece woes spread to fiscally unstable nations such as Portugal and Spain which endured the same downgrade fate as Greece this week.