Standard & Poor’s late on Thursday slashed Spain’s credit rating one notch to AA- with a negative outlook from AA, citing economic woes.

The lowering of Spain’s long term rating reflects its uncertain growth prospects in light of the private sector’s need to access fresh financing to roll over high levels of external debt amid rising funding costs, the rating agency said in a statement.

The financial profile of the country’s banking system will weaken further due to stock of problematic assets rising further, according to the assessment. Standard & Poor’s recently revised its Banking Industry Country Risk Assessment on Spain to group four from group three.