Moody's Investors Service has cut Spain's sovereign credit rating to the lowest level due to the nation's struggling economy and increasing debt burden.

Moody's slashed the rating on Wednesday by three notches from A3 to Baa3 and also lowered its outlook for Spain to “negative."

Moody’s said the recent decision by euro zone finance ministers to lend Spain up to 100 billion euros to help its ailing banks will raise the country's debt burden.

Also on Wednesday, the credit rating agency lowered Cyprus’ rating by two notches to Ba3 from Ba1.