Published: Oct 16, 2012 5:47 PM EDT
Updated: Oct 17, 2012 6:31 AM EDT

Moody's Investors Service has confirmed Spain's government bond rating and assigned a negative outlook.

The rating agency said Tuesday that Spain's efforts to improve its financial position and the European Central Bank's willingness to lend support should allow the government the time and flexibility it needs to stabilize its public debt over the next few years. But Moody's recognized that the risks are high for the financially troubled country and assigned a negative outlook to the rating.

Spain is struggling through its second recession in three years, with soaring unemployment. It must decide if it will request a bailout from the European Central bank to help stabilize its position.

Standard & Poor's downgraded its rating on Spain's debt earlier this month.