European stocks advanced for the first time in four days as Burberry Group Plc led luxury-goods makers higher, offsetting a rating cut on Spanish debt by Standard & Poor’s.

S&P lowered Spain’s debt rating to one level above junk, citing increasing economic and political risks. The country’s worsening recession is “limiting the Spanish government’s policy options,” S&P said in a statement late yesterday, lowering its rating by two levels to BBB- from BBB+. S&P assigned a negative outlook to Spain’s long-term rating and cut the short-term sovereign level to A-3 from A-2.

FTSE 100 5,799.32 +22.61 +0.39%

CAC 40 3,379.63 +13.76 +0.41%

DAX 7,252.7 +47.47 +0.66%