The ratings agency Standard & Poor's has cut Spain's credit rating and warned of risks to come, the BBC reported. S&P cut Spain two notches to BBB+, warning that the country may have to take on more debt to support its banking sector. It has also placed Spain on negative outlook, meaning that there is a risk of further downgrades to come. S&P predicts that the Spanish economy will shrink by 1.5% this year. In 2013 it expects Spain's economy to contract 0.5%.