Moody's downgrades Spanish banks

Last updated 10:17 26/06/2012

Relevant offers

National

MediaWorks staff called for board action on Weldon Mark Weldon - a casualty of the brutal rationalisation in the media sector 'Drunk and stoned' Qantas pilot loses bid to fly again Sad truth behind the rise of the so-called 'mumpreneurs' Air New Zealand denies woman from boarding heavy Tongan flight Mark Weldon’s successor will face 'unbelievably' difficult challenge at Mediaworks Pattrick Smellie: How to tell when Aussies are beaten Providers could face backlash from angry customers whose balances fall short Westport's Rebecca Keoghan named Dairy Woman of the Year Fonterra farmer council on verge of reform plan vote

Moody's Investors Service has downgraded the long-term debt and deposit ratings for 28 Spanish banks and two issuer ratings, following on the heels of a cut to Spain's sovereign rating to just above junk status earlier this month.

Because the banks have several links to the sovereign, Moody's said in a statement, Spain's reduced creditworthiness "implies a weaker credit profile for Spanish banks."

Among the downgrades was a cut to Banco Santander's long-term rating to Baa2 from A3. But the rating is under review for further downgrade, meaning more cuts could be forthcoming to the euro zone's largest banks.

Still, the move kept Santander one notch above the sovereign rating of Baa3, the Moody's release noted, because of the bank's geographic diversity and manageable exposure to Spanish sovereign debt.

Ad Feedback

- Reuters

Special offers

Featured Promotions

Sponsored Content